I do like the floating mount for the pen application though, as the height can be set to maintain a moderate pressure when on a surface that isn’t dead flat. As for the plasma, you are correct, maintaining height is critical for making good cuts, I’m no expert, just now learning, this is my understanding.
This is the purpose of the THC, it maintains voltage across the arc through height control. The floating Z axis is used for touching off the torch and setting height before initial pierce of the material. A limit switch is part of the assembly.
As the material takes on heat, it will start to move / warp, this is where the THC earns it’s money.