Lost iPad - rough edges?

I had a family iPad  (wifi only) and it had a passcode and was connected to iCloud.  All family members know passcode but only I know the iCloud password.
It went missing three days ago and suspect is related family member.
On the first two days, going to iCloud listed the iPhones and the iPad.  The iPad was shown to be off-line which in general showed it was not turned on or not in a location where it had attached to wifi before.  The iPad had a extensive list of wifi locations where it has been before.\;  local family homes, coffee shops, church and friends homes.
My options in iCloud:
1.      Find on a Map.  Device was off-line
     But you can check a box to notify you when it does come on line.
2.      Lock           and put notice on screen.   This option is lame in my case because the device already has passcode, and does not allow the passcode to be changed.  The suspect in my case most likely already has the passcode.
3.      Wipe the device when it comes back on line but this also removes the ability to track the device.
I elected to stay with item one and check the box to notify me. 
On the third day the iPad dropped off my device list and I did not receive any notification of where it is or was.  So what happened?  How could I have handled this better.
One thing that seems counter intuitive would have been not to have a passcode on a community iPad and then set one after it went missing.
Any other thoughts.  And yes I know (buy everyone their own iPad) 

More info:
Where did you lose it? Airplane, Taxi, burglary??
Did you have Find my iPad active when it was lost?
Does your purchasing credit card cover loss of purchases?
Homeowners insurance? Deductible limit?
If you are asking if Apple will locate it, they do not provide that service.

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