Above or below water doesn't matter much, slightly above will actually increase the flow rate a little. I use a sponge filter in all of my tanks, the impellers in the
hob filters sometimes need a bump to restart afyer a power outage. No such issues with air pumps, so circulation and at least some biofiltration is maintained until I find/restart the
hob.
IMO anything that picks up debris is helpful in maintaining a tank, particularly with sand substrates.