I don't see air bags helping much with your issue of oscillation. They're springs, just like coils, so they can squish and unsquish just the same. You need damping, so shock absorption should be your focus.
I've been pondering the PSI thing lately. The way I'm currently thinking, Airlift makes a bag that is inflated to lift and level a loaded vehicle, and does so with a max of 35PSI. I don't know what PSI the factory air sleeves get to lift the Tahoe. I've read that the compressor is capable of 135+PSI, but that doesn't necessarily mean that it's gonna push that amount of pressure into the air sleeves. The system is triggered by position sensors and not PSI, so that's the savior here. I think it's simply that the Airlift bags are multiple times bigger than the air sleeves, so they can lift with a lower pressure, but just require more volume.
So, the compressor may actually work about the same or less amount. It'll run a little longer trying to fill a larger volume, but it's only gonna need to pump them up to ~35PSI (probably as a near-max, too) to get the same amount of lift that the smaller sleeve bags do but at a much higher PSI.
Unless I hear something that stops me in my tracks, I'm just gonna go for it and see what happens. I'm currently shopping replacement compressors and hope to have one ordered for this weekend.
The compressor is built for low volume, high pressure. Notice the ID of the air lines- tiny tiny. It runs 1/8” lines which won’t inflate something as big as airlift bags unless it runs forever. I’m not sure what CFM the compressor is capable of but I’m pretty sure you’re going to be frustrated waiting for the bags to fill.