I use terrain overlays very often. Sometimes in the early stages of the build of the model, but some things I keep for the final model as well. These overlays are always .dwg files where everything is drawn at the right coordinates.
The 3 point stretch location method is great probaly for many. But when everything is drawn at the right coordinates (mostly in my case) it would be great to be able to treat terrain overlays as any other data source that can either be placed at coordinates or by hand (in this case could be with the 3point method)...
This would also solve the issue with updating. When something changes in the overlay file, updating it in Infraworks makes it lose previous settings, meaning that we have to reposition the overlay, every single time something changes.... Not time effective.