Just thought I'd post an update, I've kind of gotten used to the hesitation issue. Haven't tried anything new other than installing the correct NGK plugs. I still believe there's something wrong but have given up on the issue for now... Driving a little faster is helping me not notice so much but affecting my MPG of course. I'm only averaging about 42mpg...
Best tank so far was 47mpg with mostly city. Strangely it does better in the city then on the highway, I guess because that's where it struggles the most with the lean burn hesitation problem.
Also I thought I'd add I'm getting worse MPG with the new Sumitomo 165/70/13s then I was with the old 175/70s on there... I just can't win with this car it seems