I have used auto pilots many tens of thousands of miles at sea, but have elected to not have one on the C Dories I have owned. The reason for this is that we normally "drive" the C Dory at higher speeds, and I like to have my "hands on the wheel, eyes on the road" at high spees. If I was going long distances in a straight line, slow speed running or doing a lot of trollling I would have an auto pilot on the C Dory.
The auto pilot can have input from either the GPS or a compass. A rate gryoscope compass is the best, and can be integrated with your navigation system to give overlay of radar on the chart plotter. You do not have to pay attention to actual steering, but you still have to maintain a very careful lookout. Generally if I am using binoculars, taking photos or using night vision scopes, I either slow the boat down to a displacement speed (6 or so knots) or stop the boat. l I don't want to have "tunnel vision" thru a lense, when the boat is going fast.
Agree that auto pilots are far better on hyraulic steering. The motor of the pilot drives a hyraulic pump, and there are check valves which keep the wheel from moving.
There is some noise from most pilots; the pump set (motor and pump) is usually put on the bulkhead behind the helm.
The cheapest and easiest to install is the RayMarine S1000. However RayMarine is a company to watch because of its financial problems. If you have RayMarine instruments, then this is most likely the pilot for you. It is very easy to install, mostly wireless control; uses Sea Talk, or NMEA 0183 to the chart plotter. There is no rudder (or motor position) sensor, which is often a problem for some types of pilots. The hyraulics are easy to connect to the Sea Star Steering. Cost is about $1000. There are more expensive and more powerful RayMarine pilots--the S1000 is good for boats up to 25 feet.
Next up the line I would consider the Simrad AP24--a bit more sophisticated unit, with a rate gryo compass and a price tag of about $2600--considerably more powerful and rugged than the cheaper RayMarine unit. Also in about the same price range is the Garmin TR1 variant.
Top of the line for an outboard would be the Furuno 511, at $3300.
Heck, All of the C Dories are fun to drive!