I'm not a pilot but real helicopter controls do not orient the helicopter relative to the ground. Doing so means you lose much of your 3d flight capability (eg. you can't fly inverted). Cyclic control affects the rate of change of pitch/roll and does not set the pitch/roll angle.

The thing to realize is helicopter controls are several orders away from position. Cyclic is related to the 1st derivative of pitch/roll angle. Pitch/roll then affect speed, which then changes ground position.

What you want is pitch/roll to be directly relative to your input, whereas a real system is not like that.

I haven't tried joystick control helicopter flight in arma3, but what you describe sounds exactly as I expect it to be.