I had a friend test it with the Xbox One controller (which ships with the CV1, but I don't have it) he didn't report the bug but it's possible that it doesn't work. In fairness it might have been overlooked, I hardly ever use that feature when I play :)
I've never tried with inertia off, always been a fan of Newtonian space sims all the way back to Space Rogue (that one: ), so it was designed from the get go with that in mind. Could be interesting to try though.
Cool about Construction Bob, my greatest hit of the time!