After reading all of the complaints on the WSM thermometer, when I finally got my WSM, I removed the thermometer, and placed the stem in a pot of water which I slowly heater. I was careful to submerge as much of the stem as possible, yet keep it from touching the bottom of the pan. I did likewise with the thermocouple Thermopen, which has a reputation for quick response and accuracy. From 100F, the low end of the scale on the Weber thermometer, up to the boiling point of 205F, both thermometers tracked each other within the one degree accuracy I could read, and the mechanical Weber thermometer was more responsive than I had imagined.
My assessment of any potential perceived problem is that fact that the stem of the Weber thermometer is screwed directly to the lid, seemingly with a good thermal conduction path from thermometer stem to the lid. As a a consequence, the temperature of the stem is going to be brought down (typically) by conduction of heat to the surrounding outside air. This is exactly my observation. The lid thermometer reads lower that my top grate (read with an ET-73 smoker probe).
It's not really that the thermometer is inaccurate. In fact, I feel that it is amazingly accurate for a mechanical thermometer. It's just that its installation is not ideal for reading the inside air temperature of the smoker.