The auto leveling isn't a bad thing as long as you get your hitch set up properly first. The purpose of the weight distributing hitch is to return weight to your front steer axle, that was lost when the trailer was hitched on. The rear end squat is normal, and contrary to popular belief, the hitch's main purpose is not to reduce rear end squat.
It sounds like you have done the process correctly; set up the hitch first and then let the air bags inflate to level you out. It's the same as people that have added aftermarket airbags.
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2013 F-150 EcoBoost MaxTow, Roush tuned (415hp 506tq), lifted on 33s, R.A.S.
2013 Jay Flight 28BHS Elite (Equalizer 10K hitch)
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