???
Switching to atti forces the Phantom to ignore GPS data but the compass problem remains.
With most compass errors, the Phantom will have already done that (but it doesn't help).
Yes - but as a number of recent examples have shown, sometimes it does not switch to ATTI. @BudWalker has noted that recent firmware updates seem to have changed the threshold for switching so that the FC now tries harder to resolve magnetic errors.
And yes - while the compass errors remain in ATTI mode, since the FC is no longer attempting any active control of the aircraft position and will just hold attitude, the uncontrolled flight will stop and all that the pilot has to contend with is drifting with the wind.