You're totally correct atv...I've seen this several times. The rubber bushing actually wears down the O.D. of the steel rack tube. The constant slipping back & forth wears on it so badly that even when you install a new bushing...you can't get it tight enough. The reason for this is that the mounting bolt runs out of threads and bottoms-out before the bushing gets tight. Many people mistakenly replace the bushing, only to have the same issue re-appear within 5000 miles. Its not the fault of the bushing...but rather the reduced O.D. of the rack. In some cases...the bushing can become worn and it will "squish" out the side of the clamp, but most of the time, the problem is the rack itself and not the bushing. Ironically...the rubber out-lasts the steel.
As redneck as it sounds...wrap a few turns of duct-tape around the tube, and add a large 1/8"-thick washer to the backside of the bushing (between the frame and the bushing). The tape will restore the O.D. back to the correct diameter, and the washer will allow you the extra threads needed to tighten the clamp all the way. It will be tighter than it was when it left the factory.
I assume GM designed the tolerance on this assembly so that when you tighten the clamp to a specified torque...it is supposed to pre-load the bushing and gently "cradle" the rack against the frame. Well...this might give the H3 a nice Cadillac-ish road feel but, this pre-load is not enough. Dirt, sand, mud, and water getting in between the bushing and the rack accelerates the wear, and once its starts to slip just a tiny bit...it will quickly grind the OD down to the point where the slippage becomes more and more drastic. However, once you stop the movement completely...it will hold for a very long time. Try the duct-tape/washer trick...you shouldn't have to touch it again. Unfortunately, this won't make the rack any stronger but, at least you know its properly bolted to the truck and it makes the steering much more precise.