Grampi,
I wouldn't be using Meguires Ultimate Compound so regularly, as it is pretty strong stuff. It and the Meguires swirlX are a new generation of "constant cut" compounds based on using ultra-fine and very hard abrasives that do not "diminish" like normal polishing compounds do.
As such they have the ability to remove alot of paint while having smaller average particle size (which is how they can finish so nice). Imagine a normal polish compound going from say size 20 to size 8 particles, vs the Meg's UC being a constant size 12-10.
But it can be deceptive since normally such a nice finish is associated with a very fine/soft compound that is not removing very much paint. While the UC is quite strong, it is not as fine as a true finishing compound. Thus its taking so many applications to get a fine surface.
IMHO if you like the Ultimate Compound'ss action, I would be using Meguires SwirlX which is designed for micro-scratches.
Although for my money, I would use KIT Scratch Out for this purpose, since its so fine/soft and cheap ($5.5/14oz vs $10/16oz for Meg's swirlX).
You might also want to try some Eagle 1 Nanowax (which is good at filling in micro defects) or Turtle Wax's new Black Box, which is a kit containing a black polishing compound and black tinted carnauba wax.