Solved my problem -- bought a Logitech Extreme joystick, just like my previous one but WITHOUT FORCE FEEDBACK. Kept same AH stick settings and it works flawlessly, night and day difference.
My FF stick worked fine in WarBirds which supported force feedback, and used to work okay in AH which does not -- until that Don't Move Your Stick lockup was introduced.
Oh well, whatever, I'm fully operational again and AH remains the best game I've ever played.
Problem with FF stick in AH that doesn't support it is that the FF stick always had some twitchies, wanted to tremble sometimes when hand off of it, and that got AH all excited with the warning and lockup.
Damping or more deadbanding just made the stick totally unnatural in feel, no fun at all.
While I enjoyed FF in WarBirds, like many of you I wound up using it mostly just for stall warning enhancement.
So, from my point of view, I don't care of AH ever has force feedback. As usual, HiTech seems to know what he's doing in setting up the best combination of most playable and most realistic.