Actually, the cursor bouncing problems can be solved by going into the wii menu and setting your sensitivity to the right settings for your set-up (mostly depending on seating distance.
for instance, my usual seated location is about 13-14 feet from my screen. Out of the box the cursor disappeared at this seating distance, reappearing when I moved closer. I solved this by increasing the senstivity to max.
Now, the drawback is that if I'm standing 10 feet away I get the cursor bounce/double cursors. this is the only major flaw I see with this control system so far.
So you can probably solve your problem by turning the sensitivity down a notch.
Zelda definitely has some sort of smoothing function going on, because any jumping, etc goes away when aiming.