I would guess that the reason the gauge doesn't move so fast when driving but "updates" when you shut it off, or restart, etc, may be because of an averaging feature in the PCM, etc.
Otherwise, every time you went up a hill, down a hill, sped up, or slowed down, turned or the like it would cause the needle to swing wildly from near empty to near full (As the gasoline sloshed in the tank. I think the PCM averages the input of the float and updates the needle as an average.
Restarting/turning the car off resets the average, and the circuit "starts over" beginning with an instant reading, which cause the needle to reset to a new location.
My educated, but possibly quite wrong, guess.