How does sensitivity work?
 

Question for the devs really. What happens exactly when you alter the sensitivity sliders, do you still get the full range of movement but less around the centre such that surface movement increases exponentially with stick movement? Or does it simply reduce the total amount of surface movement available?

I would be interested in this also after hearing people say I won't be able to turn as well with the lower sensitivity I need to fly.

Yea its the total sensitivity, if you put it down it atleast puts the maximum lower.
So if you put it down a bit its safer to pull on the stick hard, but cant get the max out of the turns.

Even at high speeds, there is a certain amount of stick movement that will cause a stall, so retuning the sensitivity to the point where you cannot use this section of stick travel is not a loss.

Both.
I don't remember exactly, but AFAIR at minimum sensitivity you got about 2\3 from all range.
We had tried to work with full range in any sens value, but tests shows that it is impossible with gamepads to get good enough range without changing maximum.

It is very ineteresting to play in virtual cockpit view.
You can see 'stall lines' in it. They shows also that most times you don't need even 1\2 of full range. And much more about planes behaviour and handling