I do both. I deep condition with coconut oil once a week. Every time I clean my scalp and hair I take a pea sized amount of coconut oil and scrunch it into wet hair. It helps to give me the nice 'clumpy-ness' I am looking for.
I have used coconut oil when drying my hair straight Ally. I scrunched it into soaking wet hair and only a tiny (pea-sized or less) amount, then dried it straight. Too much makes your hair look greasy though. And you are right, it is hard to get away with it.