Yes, if you average over several pedal strokes and the average speed is more-or-less constant then measuring the angle many times over that interval will provide a reasonably accurate indication of the AVERAGE slope over that interval. However, it will NOT provide a true instantaneous slope reading for the reason I've already stated -- acceleration. If the software were smart enough to know when to start and stop the averaging you should get decent results but if it does it for a set time window, and that window is short, then the indication is likely to be much less accurate.
In practice, it isn't critical to know the angle over really short intervals as you and your bikes momentum will average out very short variation in slope. I am OK with the results my 705 gives me...
Brian