Not sure if this is trolling or not, but not having the cursor move during dragging is precisely the point of mouse-dragging. This way your cursor stays next to the center of the screen, where your units and buildings are if you positioned your camera correctly.
So in a way, your request looks like asking if the increase volume button could lower it. 
As for having the mouse shoot upwards when coming back, I must confess I never had the problem, and mouse-dragging has been my primary (or even sole) camera moving tool since years. But I use a rather high mouse sensitivity, and even higher mouse dragging configuration.
In the event this would be a serious post, it’d look to me as if your setup was adjusted for someone making great amplitude mouse movements (which would favor the regular screen moving cursor). If you wanna switch to mouse dragging, I’d suggest increasing the setting for the mouse-dragging in SC2 options. That limits how large your mouse movement will be when dragging, and thus avoid it landing too far from your initial pad position. 