Thanks for the info Walter. But the Ind.Alt instrument number is extremely off in my plane from what they're seeing "on the ground". Consistently 200-500' higher. I know that that's way more than can be accounted for by iFly using a barometric pressure that's a few 100th's (or even a 10th) different from the one that a different nearby tower or ATC is using. I just removed it from my instrument layout as it was a distraction.
Here's what I found in my long flight outbound on Monday after calling the towers at a Class C, two Class D's, and talking to Seattle Center ATC: if I set my Kollsman window to what the tower or ATC was reporting then my plane's built-in altimeter was spot on with what they were seeing on their displays, but interestingly enough, the GPS altitude as reported by iFly (and presumably obtained from my SkyRadar DX ADS-B In device) was always about 100' higher. I have to presume that this was due to the round-to-the-nearest-100' that goes on with those displays and barometric conditions at that time. But it does show the limitations of this old school method everyone(?) still uses to determine altitude. (I'm still believing that the GPS altitude is WAAS-accurate -- within 3 meters of my actual position 95% of the time.)
[Edit: also, now looking at my MyFlightBook telemetry data which is using the built-in GPS in my phone, it agrees with the iFly GPS instrument that on every leg I was actually higher than what my altimeter, and ATC, were telling me I was flying.]
So, three things: it turns out that my blind altitude encoder must be reasonably accurate; I now know for sure that I should fly by my Kollsman-adjusted altimeter, at least when under ATC guidance; and the adjusted altitude everyone is (should be, probably are) using is only within the ballpark of being the "real" altitude. Even though I best be using everyone else' altitude frame set (Kollsman-adjusted barometric altimeter) when enroute, when I'm close to landing I'm still going to adjust the altimeter to match the GPS.