It's not faulty, and they're not pots. I've opened it up on many an occasion. The sensor was always clean (no grease).
It's just never been CH quality. I have a CH stick now. When I put this somewhere, it stays there on the axis. Almost no spiking whatsoever.
The Sidewinder also had a bit of a deadspot.. not so much dead as a slightly wobbly center where inputs weren't as precise (most likely due to the free-floating head design with the LEDs on it that hovered over the sensor). I had to scale it for best effect.
Don't get me wrong I'm not saying it was a BAD stick. Far from it. I enjoyed it for the most part. It did, however, have some annoying habits. Minor, but present nonetheless. They existed ever since I bought it, and when I bought it the condition was unopened mint in box.
For what it's worth.