Scott,
As you say, the nominal crank sensor gap is 1.0mm - a smaller gap (provided there DEFINITELY is a gap) will produce a progressively larger signal as the gap decreases.
But there should be no shortage of signal at 1mm gap. How are you measuring the signal? If you are using a multimeter, it will be difficult to get a meaningful reading, as the signal is short duration... The only useful way is to measure it with an oscilloscope..

If you are getting injection pulses then I believe it is fair to say you are getting a crank signal that the ECU recognises..