No - your not missing anything. I just connected a sending unit to my testing station and manually adjusted the float from full to empty and watched the neelde climb and fall.
The shop manual says 90 Oms at full and 0 at empty. I got 7.3 VOLTs when full and .6 VOLTS when empty. ( My battery might be a little low ! )
If your highesyt reading is around 3 VOLTS than I would think that teh sending unit might be the problem. If your getting 7+ VOLTS when adjusted to full than check for a bad wire, a bad printed circuit on the cluster, or a bad gauge.