I downloaded and tried your example. Not seeing the problem, I watch some levels of princess peach to understand, and played around it a little.
What I tried is removing the "is jumping" condition, and use smaller margins top and bottom (in the events 8 and 9) to move the camera at the last possible time, to prevent too much scrolling.
It's hard to tell what they put on top of that in the game though, some small layouts don't scroll at all, but most I've seen seems to be linear, quite horizontal.
Only small problem I saw was sometime the camera moving then stopping, then moving again... with no deceleration. This can be solved with some lerping in the scroll actions (tutorial)