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Makes sense, and actually that isn't different from what I would have expected your algorithm to be.

I see what you mean in terms of the bandwidth impacting the dive protection provided by precise intersection. I see that as a side effect that's not directly related to it though. If your level of bandwidth is bad for the dive protection provided by precise intersection, it should be bad in general, because either way the goal of optimizing the bandwidth should be to estimate the real probabilities as accurately as possible in the circumstance of sparse information.

I feel like a good experiment would be to do something like... take a large amount of wave data pre-recorded... pick out subsets of this data, and with different bandwidths check how closely it matches the distribution of the whole data set.