I don't want to speak for Matt, but I find that there is a little give and take between driving as a response to a gust and sheeting to a gust. IMO, the goal when sailing uni (meaning it is hard to really sheet in and out in response to a gust) and you get hit with a mild gust is to try to anticipate the gust and steer with it- meaning heading up some. If you don't do anything then you end up heeling over too much which is slow and may lead you to dump too much sheet and setting up a see-saw type effect. When I sail solo my aim is to always keep the windward hull just a little out of the water. I can usually steer to make this happen with gentle movements of the tiller. Of course there are times when it is too gusty and too shifty to really maintain it but that is when downhaul and maybe dropping the trav 3-4 inches helps. I almost always sail with the trav down a few inches... I find it SOOO much easier to find a good groove that way (however, it would be nice to sail against someone on a blade sometime to really see whether this absolutely hurts my pointing and/or VMG). If you only sheet for the puffs then I think you will be missing out on some good lifts... IMO
I apologize if I am just stating what you already know.

An addition to my previous post.... there are people who only seem to sail when they are racing. Some have gotten to the point, I guess, where they are good enough to do only this. If I only raced I would go nowhere (bad habit of trying to do exactly what other boats are doing).

another edit: another problem with allowing the windward hull to get too high is that the rudder "detaches" from the water, becomes nothing more than a brake and negates your ability to turn down again unless you get to the way back of the boat and/or drop a lot of mainsheet. Seems like this happens more with my starboard rudder but I also wonder sometimes whether a different rudder would work better ? I am sort of hoping the Falcon has a different rudder (how about a cheaper version of the Bim rudder?)