Mmarien,
The reason that VS 0 is used, not ALT HOLD is simple. If you are in a climb, and press ALT HOLD, the altitude is captured at that moment. The plane will continue to climb as the autopilot pitches the nose down, so then the autopilot will descend back to the engaged altitude after it has "leveled" the plane. So the airplane doesn't just level out, it ends up going back down. If you were in a really nose up or down attitude, this could be significant.
This is also the same reason a roll angle of 0 is used, not a heading or track hold.
Again, LEVEL is an emergency mode, where the point is to recover the plane to a basically level situation so that the pilot can either hand fly from there or program the autopilot more specifically. It isn't meant to be something used for standard operations. If you want ALT HOLD and HEADING HOLD, you should really engage using control wheel steering.
Dynamic,
Is the 100 FPM a really steady, smooth climb, or does it just sometimes hop to 100 FPM? When the office is open again next week I can ask our autopilot designer if there is anything he can think of that could cause the target to be off slightly.