A few things about your thinking...
1. You can be outside of controlled airspace and still be IFR and report your position using a VOR radial and DME (even if the DME is taken from your GPS).
2. When ATC asks for your position, they just want to know where you are as to be able to "radar identify" you. You tell the the location, and they find you on the scope.
3. Your GPS may not be certified for IFR, but you can still use it as a reference.
Food for thought: An airliner is cleared for an ILS approach, but is FMS equipped. The airplane follows the ILS, but do we need to turn of the magenta line with all the fixes, etc?
Suggestion: I have noticed a lot of pilots depend on the GPS and don't properly learn how to use VORs, NDBs, Dead Reckoning, etc. Use those skills as your primary and use the GPS to back it up. Don't just turn on the GPS and follow that digital CDI, only.