Yes a whip antenna does slightly shorten the range, but not significantly. Plus it's tuned and provides consistent results, it's a known quantity. Wadding and coiling is not tuned and is an unknown quantity. One installation might work fine for you and another might have problems.

I've been using base loaded whip antennas for years. A range check with the transmitter antenna down will show a few paces less range, but it's still plenty for flying and is safe and consistent from one installation to the next. Whip antennas are inexpensive, easy to install and reliable.