Use INS position as backup/failsafe to GPS loss?

ArduPilot is capable of INS-only navigation. The issue the INS accuracy degrades fairly rapidly. See Inertial Navigation Potential - #5 by tridge for a few more detials.

For Copter in particular, the high level of vibrations mean an INS solution degrades within seconds. Good enough to cover any GPS glitches, but not enough time for landing.