Ok, I set it to 32 steps for x/y/z, homed, and then re-ran my test. I am seeing results smaller than a full step now. Perhaps I'd done something wrong in my past tests, it's been a while since I tried that.
5:24:18 PMStopped at height 0.012 mm
5:24:15 PMStopped at height 0.005 mm
5:24:11 PMStopped at height 0.005 mm
5:24:07 PMStopped at height 0.005 mm
5:24:04 PMStopped at height 0.012 mm
5:24:00 PMStopped at height 0.012 mm
5:23:56 PMStopped at height 0.012 mm
5:23:53 PMStopped at height 0.012 mm
5:23:49 PMStopped at height 0.005 mm
5:23:45 PMStopped at height 0.005 mm
5:23:42 PMStopped at height 0.005 mm
5:23:38 PMStopped at height 0.012 mm
5:23:35 PMStopped at height 0.012 mm
5:23:31 PMStopped at height 0.012 mm
5:23:27 PMStopped at height 0.012 mm
5:23:24 PMStopped at height 0.012 mm
5:23:20 PMStopped at height 0.012 mm
5:23:17 PMStopped at height 0.012 mm
5:23:13 PMStopped at height 0.012 mm
5:23:09 PMStopped at height 0.005 mm
5:23:06 PMStopped at height 0.012 mm
5:23:02 PMStopped at height 0.012 mm
5:22:59 PMStopped at height 0.012 mm
5:22:55 PMStopped at height 0.012 mm
5:22:51 PMStopped at height 0.012 mm
5:22:48 PMStopped at height 0.018 mm
5:22:44 PMStopped at height 0.018 mm
5:22:40 PMStopped at height 0.018 mm
5:22:37 PMStopped at height 0.012 mm
5:22:33 PMStopped at height 0.012 mm
5:22:29 PMStopped at height 0.012 mm
5:22:26 PMStopped at height 0.012 mm