Regarding the Lionel Army 0-4-0... I think the little motor in these has only three poles. Especially when new, they are subject to cogging. Sometimes you can feel the armature poles "stick" as you turn the drive wheels by hand. If so, the ERR Cruise Commander will struggle to deliver smooth slow-speed operation. Perhaps over time the permanent magnets weaken, because the "stickiness" seems to be less noticeable on older locos with more run time. The 0-4-0 uses the same motor and chassis as the Scout, so I offer the following:
Lionel's part number for this walnut-sized Mabuchi motor was xx-8008-x, and it had been in use for almost 30 years. Then about eight or nine years ago I saw a steam loco from one of Lionel's "NASCAR" sets, with the shiny chrome paint job, etc., at York. It had this same drivetrain, but the motor had a YELLOW nylon end bell, and two capacitors visible on the brushplate side. I have no idea if the yellow motor is better or has more poles than the 8008 motor. It would be an easy swap so I'm curious to try it. But I can't find an exploded diagram for the NASCAR steamer, nor a part number for the motor with the yellow end bell on Lionel's website. Hmph!
Fast forward another year or two and the Peanuts Halloween loco appeared. I think it was the first "Scout"-type loco with LionChief control. Still spur-gear-drive, and what looks like the same motor that's been around since 1982. But... Lionel changed the mounting plate, AND enlarged the intermediate cluster gear to give a lower gear ratio. Perhaps as much as 33% lower. Progress! Looking at lionelsupport.com, I don't think this improved gearing has been applied to the switcher, yet. But you might be able to swap in the LC motor, mount, and larger gear if you can obtain the parts from Lionel, or from a donor loco. IMO, the new gears would go a long way toward slowing down this jackrabbit, and provide smoother performance.
These incremental improvements are encouraging, but I would like to see Lionel bolt the four-wheel worm gear drive mechanism from the latest "Percy" under the Scout boiler shell. Percy uses the same wheels, and it looks like it would fit. Even better, they could adapt the chassis, motor, and flywheel from the Legacy Atlantic! 30:1 or bust!! A lot of us started with a Scout-type loco in our first train set. Why should the Berkshire be the only Postwar style loco to get a full engineering upgrade to LC+? A "premium" four-wheel motor chassis that bolts in place of the original would support my proposal for an MPC Celebration Series. So how about it Lionel!?
Getting back to your Army switcher, the upgrades I mentioned above will help. But IMO you're trying to make a silk purse out of a sow's ear, and it's always better to start with silk. The K-Line A5 is a newer, better design. And the MTH Premier 0-4-0 is in a different league! I would look for some bargains before I invest $200 in this goat. My $.02.
"It's the gear ratio, Brian. It always has been the gear ratio."