Changing the "engine cycles before changing correction" value to something higher like 10 will slow down the system to keep it from chasing it's tail.
When you let off the throttle, the injectors are shut off, hence the full lean when you're delerating.
The system will always try to correct lambda within the parameters you set so when you move the throttle up and down, your lambda target changes and the system will try to get there. What you have there doesn't look bad.
It's up to you. I have mine set at 15% lean limit and 10% rich. Fuelling around idle can be tricky and vary a lot more than other running conditions, so that's why I have mine set to those amounts. However, in all other running conditions I don't need more than 3 or 4% correction either way. I tend to err on the rich side so the system spends more time leaning out lambda.