Hello,
ad 1): quality of the stitching is not mediocre. It's ok, but as a source DJI Fly app uses smaller versions of JPGs and the final image has just 32MPix instead of maximum possible 177MPix of 16-bit panorama. Yes, there are problems with metadata (they are missing to be exact) and DJI is ignoring that fact.
ad 2): There are 26 separate pictures, not 12. And you can get not only smaller JPGs but also DNG files which, in my opinion, are essential to get good results from
Mini 2. As you mentioned, there will be no stitched panorama on the card, that is true. You have to use stitching app on a computer. Google Photos automatic stitching used to work in 2019, but I have no idea how it works now. For me, waiting hours to get the result was the last valid option so I didn't count on it.
Yes, the process is not user-friendly, and there glitches and problems. Some are, I'd say, rather objective (eg. lack of full sized panorama - phone's and drone's CPUs are way too slow for it, even on much more powerful computer it requires dozens of seconds to make one panorama), some are DJI faults (eg. metadata). Unfortunately, from all well known/biggest companies of the consumer video/photography market in a broad sense (DSLRs, MILCs, action/360 cams, drones) I consider the quality of DJI firmwares and applications to be one of the worst. DJI Fly app or Mimo app are theoretically nice looking and working apps, drones (usually) fly as they should, cameras make videos, but there is an abundance of glitches and small annoyances, and they are ignored. I had a chance to use many brands and that problem is very common with Chinese brands, especially the number of glitches. On the other hand, ignoring the problems is a world wide way of after sale support. It costs real money, and some companies think that their power/financial success/market share is in the sales to a new customer, not in the happiness of a current/returning user. But that's another story.