When working with Azure Table Storage you will ultimately have to deal with ITableEntity. My solution to date has been to create a class that derives from my model class and then implement ITableEntity. This derived class can them provide the plumbing for table storage while allowing the layer to return the correct model type.
The problem here is that ITableEntity is still leaking outside of the Azure DAL even though it is represented as the expected type. While I don’t like my classes leaking knowledge inappropriately to higher layers I also don’t like plumbing logic that converts between two model classes that are logically the same (although tools like AutoMapper do take some of this pain away).