Jeff - the term 'sprung hornblocks' covers a multitude of sins. The system you describe in your OP is what is commonly called 'spring-assisted', which is where a (comparatively weak) spring depresses a wheel into a hollow, but where the chassis is otherwise sitting on fully-compressed springs, i.e. the chassis is still, in effect, for the most part, rigid, and where the screw does set the ride height. Other coil spring hornblocks, e.g. the Brassmasters one in 4mm, is where the strength of the spring is such where the wheels do sit somewhere in the compression range of the spring without compressing it fully, i.e. when a wheel encounters a track hump, upward movement is accommodated without a hard bump being fully transmitted to the chassis.
The problem with small coil springs is that their springrate cannot easily cope with widely differing loco weights, as you correctly surmise.
The problem with 'fully sprung' (if I may use that term) springs is that setting the ride height and getting the spring strength correct are interrelated, and therefore somewhat problematic. CSB technology provides a good route to addressing this holistic issue.
Whilst 7mm CSB applications are still relatively rare (Adrian Cherry is a convert), I think one of the problems in 7mm is that, unlike 4mm, where we have a reasonable consensus on what locos of a certain size should weigh, there appears to be little discussion or consensus on that matter in the 7mm world. Most 7mm builders, on being asked what their locos are finally weighed at, often respond with a puzzled "I have no idea" or "Sufficient!" or "I don't understand the relevance of the question."