When I first got my Explorer XS back in 2001, I Noise Cancelled like you do, on the ground motionless, making sure that there wasn't any metal under the Search Coil. I did fine doing that way.
Now I hold the Coil up in the air about 12" and hit the Noise Cancel Button. I look around to see if there is any Transformers nearby and if there is, I point the Detector in that direction. I think by doing it in the air, it helps knock out Electrical Interference that is above ground better than doing it on the ground, thus why some of us do it in the air. I did see an improvement with stability of the Detector when Noise Cancelling in the air and that is why I do it now. The Detector ran smoother it seemed and the chatter would be less when I first tried it.
But I also think that if there is buried Cables that are causing Electrical Interference, then doing a Noise Cancel on the ground maybe better to rid the Detector of this, since it is coming from the ground and not the air.
Whatever reasons a person does it, either in the air or on the ground, the Detector will run as smoothly as possible and if it still doesn't, then your Sensitivity is too high and will have to be dropped until the Interference isn't bothering the Detector anymore.
As I have been doing a few boulevards lately, I have had to drop my Sensitivity all the way down to at least 14 and sometimes 12 using Manual Sensitivity since Auto still would chatter a bit this high.
Hope this gives you any idea as to why some use Ground Noise Cancelling and some use Air Noise Cancelling. Just my thoughts on this! Good Luck and HH.