Well, on many boat trailers the inch or two should have that large of an effect. Since most of a boat's weight is at the rear, boat trailers have the axles pushed rearward compared to the average trailer. With this the adjustment, up or down, at the tongue doesn't have as large an effect on transfering weight on the trailer axles. BUT, that is not to say that if the trailer was swaying some, you more than likely had too little tongue weight on the H2 and your hitch probably WAS too high.
IMO, the H2 is not a tow vehicle, but it will tow 5000lbs without any problems if set up correctly. Also, you probably have surge brakes on the trailer and upon braking the slap of the tongue can be felt more in the H2 for some reason. Same thing when you accelerate from a stop, the jerking of the surge brakes sliding apart. Just a few possibilities.
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