Wow... So you have some wild dynamics down that hole.
This is why you need a down hole pressure sensor...
If you have say 470ft of H2o standing above the bottom of your bubbler tube you need 203psi to just barely get a bubble out the bottom. This would be at the no (air) flow rate. Now the pump kicks on and starts dropping the well level. It drops 300ft. Now you would only need 74psi to still only barely have air flow. At 203 psi, air would now be flying down that tube. You would then have the pressure drop I mentioned.. Things would not be happy.
What you really need to make this work, is FLOW control of the air. You need a *flow* sensor and an electrically controlled orifice. You then use a computer to control the orifice to maintain next to nil air flow at all water depths.... Is this easier or less expensive than a single pressure transducer??!?! A transducer that provides your signal already in a form your controller can use?
Keep in mind the bubbler will also have some lag, possibly causing control dificulties.
Also I gare-un-tee you will have valve and air compressor headaches.
I just cannot see how your tubing, weight, flow meter, analog orifice/valve, flow controller, compressor, electricity(compressor), maintenance (all of the above), can come close to the price of a single pressure tranducer on the end of a couple hundred feet of 2 wires and a resistor..
BTW your idea to control the pump is a great one. I put a three phase pump down my hole then ran it with a VFD from single phase power. I could run the pump at any speed. I had it ramp up and down.