That prefernce only affects the value when using the keybaord shorcuts, not the nudge buttons.
For what it's worth, when you get used to it, the keyboard commands are much more efficient.
Also, adding Cmd/Control to the keyboard shortcut multiplies by 5x.
So I like to set the increment to 1. Then I can do coarse adjustements with Cmd-Opt-Left/Right (or Control-Alt-Left/Right under windows), and fine adjustements with Opt-Left/Right (Alt Left/Right).
Thanks, John. I've set the adjustment to 1 as you suggest, and am finding the keyboard command much more useful.