Wow dude, almost 3 years as a member, and you finally decide to post!!!!
Welcome, so to speak.
I have a buddy who has a panel mounted 496, works great.
As to the altitude function, it is derived from the GPS, accuracy isnt as good as a regular altimeter, but it is not subject to barometric fluctuations either.
Should be fine for VFR, as a backup, as long as you pay attention to what is going on out the window.