I have a similar setup as in Chucks pictures. It does get in the way at times but can't imagine being without it. I am switching over to the longer arms and lever style indicator as in Divers post and will be installing a foot or two of metal strip to my table so that I can move it around and not be connected to the headstock.
I also have a pack of brass shim stock from .001 to about .15 and in .0005 variance in the thinner stuff. Works great to help true up stuff. I see diver is using that new attachment to help true up stuff. I'll wait to see how his works before I try one.
I'm really jealous of those of you with machinist lathes that can true out runout just by adjusting the chuck.