Your not "dead wrong", but not entirely correct either. The trick is to make smaller corrections to begin with. Flying helicopters is like bowling. Engaging the brain is dangerous. Once you get to a point where your reactions become automatic, or basicly subconscious (and yes it will happen), you'll be flying 3D before you know it. As I'm sure you already know, it doesn't take much stick to make this bird move. You'll get to a point where your thumbs just do the right thing.

You're doing great. At least you recognized you had a problem and started looking for it. A lot of people who start flying insist the heli has to be junk and just give up. Can't possibly be that last crash that bent something, or broke something that isn't obvious to the eye.