I’ve been using a trackball mouse (Logitech Trackman) for cockpit interactions which I find so much better in VR than a mouse - because it stays in the same spot.
The hand controller laser pointer magnifies the smallest shaking motion of your hand, the longer the laser the more magnified the shaking. It’s the same in XPlane 11’s hand controller implementation. There is no additional smoothing of the hand movement to account for a big long beam coming out of the controller graphic.
Other than that you are using it correctly. I enjoyed using the hand controllers in VR in XPlane, but honestly I’ve become accustomed to the little trackball mouse placed low down at seat level to my right hand side. I might still use the hand controller for starting up but not in flight.