I had some of the same concerns as you when I first started planning the placement of a new in-dash receiver.
But we have different uses I think: I didn't want to use it for navigation, or much of anything requiring much interaction with the touch-screen while mobile. The main points for me was all the built-in connectivity (like Bluetooth, audio in/out, etc.), and a back-up camera.
If you're going to be interacting with it while driving I completely agree that the placement isn't quite right in the original spot. But, if you're not touching it much I think as long as you get an in-dash receiver with a motorized screen in our buses the original spot is a great place. (I ended up getting a Pioneeer AVH-X5600BHS; I don't know about your Kenwood but this receiver has a decent angle that can be programmed for viewing from the driver's seat.)
If I were to put something in this bus that I could use while driving without distraction I'd do something similar to what I did in my GMC. That was a much larger (12") detached touch-screen with all the 'smarts' hidden away; but, at least in my bus, there's no good place to put a detached screen like that, not one that wouldn't get in the way of shifting or some of the smaller equipment I eventually want on top of the dash. :/
My navigation equipment unfortunately won't be so nice but it will work. I have an old Garmin GPS 60 (which easily fits on the dash and some paper maps.)