"On Dial Cick Always Return To:" have the purpose make that feature you always use accessible after use other, and yes, this mode have on mind MCU and Mouse mode, than pure MIDI.
Ok after take a faster look this can be the new behaviour.
When mode "On Dial Cick Always Return To:" is active, the software continue working how is now, you can switch to any mode, operate in that mode, when finish click the dial, Elephant back to selected mode at right of "On Dial Cick Always Return To" .
No change in this mode.
When "On Dial Cick Always Return To" is disabled you can switch between mouse modes and MIDI modes trough hotkeys at any time without click the dial when finish.
MIDI not require unrelease the performed action, all mouse modes need that.... so as you said, the current Elephant behaviour add unnecessary step to a user need use MIDI mode major part of time.
I wait for your comments and then prepare the new version. I think this changes see the light in v1.8 in just 2 or 3 days.