The most glare comes from the surface of the touchscreen so for the circular polarizer to cut down on the most glare it will have to be on the top of the touchscreen's surface. (so your finger will be touching the polarizer)
While it's true that the 'sensed' touch will be larger than without the polarizer applied, it's totally dependent on the stiffness of the polarizer. It's a pretty bold statement to go ahead and say exactly how big the size of the sensed touch is going to be, if it's even significantly larger. From what I know about polarizers.. they aren't that stiff. From what I know about touchscreens, they work best when used with a fingernail, so even if the sensed touch size was 10x bigger than the surface area of your fingernail on the screen, It'll still be pretty accurate.
You could just get the polarizer without the adhesive..
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