i'm assuming the reading wont be as accurate to those given if the sensor was in the sump?


The reading will be 100% accurate for the oil where the sensor is, as here it has already been squeezed by the pump and made contact with hot engine surfaces it will have picked up heat, part of the oils job.
Personally my fave place in in the sump, mine maintained for example 80C today when measured from the sump, which is the coolest I'd want to see, don't want it too cold.
tabetha