I believe the bypass cap is mostly necessary if the battery is removable. This will prevent unnecessary power consumption and the status pin flickering while a battery is not connected.
As for inductance of the leads... I'm sure you can make a theoretical case where the exact inductance of the wires causes oscillation/fail of the current and/or voltage regulation. But I would be surprised if you could do that by accident, with normal wires that are not intentionally wound up into coils and/or crossing a room.
In fact, the main concern I would have for extra length of the wires is the voltage drop, as others have stated. But my concern is not that the battery charge will terminate early. It will get close enough, in this example, anyway. You can also select the cutoff current, of which there is a range with different part numbers - at least between 2.5% to 10% (of max charge current?), from memory. I think the main practical concern is that the last few percent of the battery will take significantly longer to charge. For w/e the reasons, though, it is trivial to put this device right by the battery with a little daughter board, if necessary. But of all the things that I can get wrong when making a board, <2 foot wires to the battery, here, I'd be totally fine to give that a try on a prototype.
This is all based on my own personal use of this device and my limited knowledge of electronics, though. I can't wait to hear how many ways I am wrong.