marvic wrote on Feb 19
th, 2013 at 7:07pm:
Wings that are not level will lose lift. Gravity is the LAW.
I'm not happy with the first statement, Mark. You are gaining a horizontal component due to banking the wings, that's what actually leads to turning your plane. By this, the vertical component is reduced while the total amount of lift generated doesn't get altered. So you are losing altitude because some of the generated lift now turns your plane and doesn't support it vertically as much as before banking. Result of a tilted lift vector. You are pointing it somewhere else.
'Wings that are not level will lose lift' may therefore be 'wings that are not level will lose on the vertical lift component and gain on the horizontal one'. Well, as long as they generate lift.

The vector of gravity isn't changed and now wins over the reduced vertical lift component. You are losing altitude.
To compensate, one would increase the angle of attack, which would increase the total amount of lift generated. This causes more drag which roughly explains why you need some more power in a turn which doesn't descend. Yaw tendencies and corrections not included. The autopilot does take care of the aoa increase, but since it also shots some bank angles of up the 30°, it seems to lag behind and then ends up in over-correcting at times.
A while ago, I've posted a very rough fix for those sort of turns. It's about altering the max allowed bank angle for the AP to only 25°. One could try if this fixes the problems Christopher mentions.
http://captainsim.org/yabb2/YaBB.pl?num=1335134700/46#46 Since he spoke about shallow angles, it may fail though.

From hand flying her, I'm ok with the current behaviour though. Maybe I just got used to it.