I've been using the Digger coil almost exclusively since I got my 705. How sensitive I can run it depends entirely on the soil I am over. Being in a glaciated area (kerns, eskers, kettle lakes and so forth), there is high variability from site to site in terms of mineral deposits. Some places, the auto ground balance reports a single-digit value, other places it is in the low to mid 20s.
I find myself pushing the limits of the coil; I take the sensitivity as high as it will go and then knock it down one step so it makes no false noise. This typically means 24-27 in "normal" soil here, but I've occasionally had to drop it to the low-teens. I found one site I *could* run it balls-out at 30 sensitivity with no falsing, but that was a fluke -- and that high of a sensitivity has real disadvantages too. The moisture content of the soil (dry vs. after a rain) will definitely contribute to a different GB value.
I have found that running it that hot absolutely gives the best depth, but it will often give crazy readings, especially over iron or foil trash targets. (E.g., it will hit at -8 on one pass, 46 on the next, then move from 28, 38, etc, in the middle. This along with a "junky" sliding audio sound.) When that happens, I just bump it down 5-10 sensitivity while hunting that particular target and it gives a more accurate reading. (And always check the spot from multiple directions, of course.)
The same behavior that the OP described also seems to happen if the sensitivity is too high for the local conditions.