Hi T,If your multicopter control works that way but usually setting servo signal to neutral in throttle channel does not cause altitude hold, copter will ascend or descend depending of current altitude.
On yaw, nick and roll channels servo neutral means steady behavior, increasing difference between servo neutral pulse converts to movement speed through nick and roll angles and may result flip upside down if difference from neutral is applied too fast and on extreme amount. On yaw channel the last is not an issue.
That's correct, in my last post, I said that once the REMOTE reaches the ALT of 1 sent by the TRANSMITTER (BASE) it sets the motors control to neutral, and keeps comparing, and adjusting. If it goes too high, then it slows the motors, and low, it speeds the motors.
Yes, the comparison of each control, should lessen as it nears the desired input, for all channels.
C.