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Haha, yeah it can be fun. Try facing an opponent that has instant recovery and resiliency for their Paybacks and it can be tough. If you want a CRAZY (almost annoying) challenge, fight the computer while the computer has Auto Reversal as a Payback and holy crap! Boyyyyyy, the CPU sure loves that auto reversal. I had them reversing literally every other move against me at one point, it was crazy haha.

That does indeed seem to be a side effect of instant paybacks. The reason it doesn't bother me is because I don't use the Finisher payback, since I use CE to increase my finishers or have unlimited anyway. My way of thinking is that since CE can give me extra (or unlimited) finishers anyway, I will use other Paybacks such as low blows, resiliency, etc. In the future I will try to improve it more though, just in case someone wants to use repeated Paybacks to give themselves multiple finishers instead of using CE to handle their finishers.