I agree with you that iFly is probably reporting what it's getting from whatever source it is currently using. But there's two different things going on in your last post. In the first case of your testing, iFly is reporting what it's getting from the Pixel and the tablet hardware via a blackbox programming interface it uses (aka an API). In the second case, it's reading a stream of messages it's getting from the Stratux. Two different things. The Stratux may have a better (or not) GPS receiver, and/or it may be that it's updating iFly less often than the API allows -- so less jumpiness. But the important point is that when connected to the Stratux, iFly is not using the API to get its GPS info.
What I've been questioning is whether the API is providing correct altitude information. It has already been shown to not be working right in regards to providing the most accurate horizontal position information available when in "fuse" mode. And, iFly (when using the API) is reporting a lower altitude than what Google tells me my home is at. And, that altitude is lower than what another GPS app on the same device is reporting. So, I have a shadow of doubt whether it's been passing accurate altitude info. It probably is, but I'm going to test some things.
If there is a problem, I suspect the API and not the iFly app because I have a third GPS app that 100% agrees with iFly in regards to altitude -- both of them being low, and both reporting the same altitude to the foot. I suspect they use the same API. This behavior was consistent for these apps on 2 different phones.