It's the default mode on iPad - had you reconfigured your iPad to show you a full-screen list instead?
I guess I have.
One thing we have considered that might help in your case is what we're calling "layered two-panel mode"
That would be a major change. I have been trying to think of how this can affect my search behaviour. It might work.
Also, would it help matters any if we highlighted the search field when you return from the definition screen if the keyboard is open?
Sounds like a great idea! It would definitely help.
Have you ever thought of implementing a permanent favourites bar at the bottom of the screen instead of accessing it by sliding from the side of the screen? You can make it similar to the fan button in the old Pleco to toggle it. This allows us to toggle character sets and we watch the changes live again (which was very useful when I was learning the other character set, but not so much now that I've already mastered them both).