Pilot-induced oscillations (PIOs) don't just happen in flight sims; they're alive and well in real flying too. YouTube shows many videos of pilots who came to grief with a PIO-flavored landing attempt.
In sims, we have sensitivity and null zone adjustments to attempt to address control sensitivity issues. But the fact is, no desktop simulation can EVER replicate real flying, due to factors like loss of peripheral vision, "seat of the pants" sensations, realistic control feedback, even WITH FFB controls, etc. At the end of the day, there's nothing gained by lamenting that simulations differ from real flying - they always will. We just have to mentally adjust to things that aren't "just right" and make the best of it.
Things I like most about flying sims are that I never get any unfunded FAA ADs for my sim airplanes, I don't need any flight physicals, biennial flight reviews, or instrument competancy checks, and my sim airplanes never need annual inspections. That's a LOT to like!