It took me a while to figure out what works best. I wrote something about it, search for "ipad happiness at last" (since the idiot pprun3 naz1s won't allow the actual url).
Basically I use a modified (extended) RAM mount, which holds the ipad in front of the yoke where it doesn't obscure anything. It's a compromise - life is full of them. I use the mygoflight holder, which can also be strapped to one knee.
The touch sensitivity of the thing is a nuisance, you will indeed every now and then find yourself looking at it and thinking "why is it showing THAT?". Just something you have to get used to.
I find that the built in GPS works fine in level flight. In steep banks it often doesn't, no practical impact except the CloudAhoy track looks funny. I also noticed on a long descent the other day that it lost GPS for a minute or two. If any of this bothers you, you can get an external GPS for around $100.
I don't really know why you would bother with airplane mode, but if you do worry about these things then I guess an external GPS might solve the problem (though it might also get switched off in airplane mode, I have no idea). The idea after all is that even radio receivers generate RF which might affect our oh-so-delicate navigation equipment.
By the way Cloud Ahoy is a fabulous app (though I don't know if it works outside the US). It shows in detail all aspects of your actual flown route, once you're on the ground.