Both pan, and pinch-zoom should just work out of the box. You don't need to handle the gesture event to do that (ie the code you have that does the Map.PanTo would only serve to break the pan behavior).
Also showing the MessageBox during a gesture will really bring havoc to the whole deal, since the map would loose focus the second you touch the map.
Does anyone have any update on this?
We are also facing the same issue. Touch Events like Map pan and Tap is not working when windowless parameter is true.