midi automation

[the19thbear]

I have been facing this problem everytime i want to do midi automation:AAAARGH!

Let's say i record a midi part.
I then want to add parameter automation (midi cc) to it.
I select midi controller number 2 (or whatever), and i expect to be able to draw automation just like i would draw normal region/clip volume/pan automation. But no. Midi automation insists on going into an on/off state.
The only way i can do smooth editing is by using the pencil tool and drawing in the curves i need..

Normally with volume automation, i would cmd+left mouse click to create an editing point on a volume line. then i would be able to pull that up or down and i would get a smooth transistion from point to point. But not with midi editing.
It only makes hard cuts, and everything looks like square waves, expect for when i use the pencil too, which is horrible for making fine editing.

Is there something I am missing here?
Thanks