Not setup, not faulty.
I'm not running the shock molasses slow, I just tried it to see what it did. I've run boatloads of other shocks, and they don't behave this way. I've also tried other DHX Coils, and they behave the same way. Friends have them on other bikes, and report the same problem.
I'm experimenting with higher IFP pressures, to prevent the suspension from going so deep in g-outs, and that helps some, but the rebound on the DHX Coil still feels funky, very vague and uncontrolled compared to, say, a TFTuned 5th Element Coil or Swinger 4-way Coil, or even a lowly RP3.
I've also got my DHX shimmed a little softer on the compression side, to prevent the spike that many are trouble by. This helped the shock a lot, but the rebound remains the same. I'm wondering if the rebound shim is too stiff. If it was too soft, the spring would open the high speed whenever the shock isn't loaded, thus making it impossible to give it a molasses slow setting when pushing down on the seat.
A perfect rebound shim will always make the shock seem fast when you just push down on the seat, but with the addition of your weight, the shim will stay closed, and give you the nice, calm slowness.