When a pitot injests or is coated with ice, it's reading might go to zero, might become completely plugged and behave like an altimeter, as you point out, or it can be partially blocked or intermittent, leading to other erratic readings, depending on the exact way that the ice is covering / sealing the pitot line. SkyView currently only changes to GPS assist when airspeed goes completely away.
We don't have specifics to discuss at this moment, but we're always researching ways to improve our attitude algorithm and our ability to deal with degraded sensors and inputs. One of the ways we've done this recently is by ensuring that our heated pitot performs they way it should all of the time, so that in a properly-equipped aircraft the chances of the pitot misreporting airspeed are as close to zero as possible.