Normal, Eco and Pwr are just user interface modes for the gas pedal. Eco needs large initial movements to add power, near the floor if is more abrupt Pwr is more abrupt initially, near the floor it is more gradual. Normal is linear with movement, no slow areas or abrupt areas. None of them have any effect if you are using cruise control. they just change the 'feel' of the pedal.
The Prius s a very small and very tight suspensioned car. I bounce between cars I own and notice that the Prius reacts much much more than my other cars with gas pedal input and letting off the gas. If you let off the gas a little in a little car you will notice it more than in a big car because of its weight. The bigger and heavier the car the smoother the cruise. I know we are talking about a G3 but in a G2 everything is really tight especially the steering with zero dead band. I test drove a G3 once and it was much more powerful than a G2 but didnt take note of the steering. My Prius is a go kart compared to my Crown Vic. My wife loves it though. I would play with th tire pressure. There probably at very low door placard pressure and the car may be wallowing. Have all tires pumped up to 40 lbs of pressure. It will be lighter on its feet and the car will get much better gas mileage. The car may ride a little rougher though. Use cruise control. The Prius rides a little different than other cars. Soon you will not even notice it.
My impression from 45k miles in a v of what ECO does: As you drive along, your foot position/pressure on the gas pedal varies slightly. You don't mean it to but a combination of foot comfort and car motion over varying surfaces does it in amounts you probably aren't aware of. The pedal position/pressure is sent as a signal (no mechanical pedal to throttle connections any more) to a computer. In ECO mode the computer is programmed to ignore those very slight variations in position/pressure and not to send a signal to the fuel delivery system (Direct Injection) to send an extra pulse of fuel into the engine thus speeding up things where your foot pressure then would have to adjust to reduce that very small speed increment you picked up. Or the reverse if the sensor sensed a slackening then your foot position/pressure would have to increase to pick up speed. ECO combines with the AUTO function of the HVAC (heating and air conditioning) system to moderate the inputs and let the computer control when the HVAC turns on for reasonable economy. I drive with ECO and AUTO on all the time (except sometimes my important passenger wants to control the fan speed). I don't do anything beyond drive at reasonable speeds and try to anticipate where traffic is going to slow down so I stop gradually. I don't charge up to the light and try to save my brake pads (except on a Prius if you slow gradually you use the regen system to slow down and recharge the battery, pads last many more miles on a Prius). I use cruise control whenever I can and it is safe to use it. I started out trying to stay 2-3 miles under the speed limit where I could. Recently I'm just at the speed limit due to increased traffic. I try and not give Prius/hybrid/wagon drivers a bad reputation for clogging up the interstates. I let the pickups and huge SUVs go flying by. I added Daylight Running Lights (DRLs) and blind spot mirrors (MaxiView) for safety.
I own a Prius III and a V. The V tends to rock similarly to an SUV. Every minor steering wheel shift, the car tends to rock a little. Specially around curves. The III does not have that problem because it is a couple of inches lower than the V.
I came from a Porsche mid-engined roadster and a CRV to the v. One a great handler, one a taller 4WD SUV. I don't notice any unusual rocking compared to other cars as I go around curves and I am at the speed limit when I am going through them. I do run my tires at 42 and 40. See if adding pressure helps but don't go beyond the capabilities indicated on the sidewalls of the tires.