As far as the original post goes:
Definitely need to hold the starter a little longer. Mine (a 13) will do the same thing if I don't let it catch, though it's only a fraction of a second longer than you were holding the starter.
I think I have an idea on the throttle blip problem. The bike's stock fuel injection completely (or nearly so) kills the fuel use on engine braking. If you're being really abrupt on and off in the blip, it could be the engine braking. Mine does EXACTLY this fully warmed if I'm too quick with a blip, usually at slow speeds when putting on the clutch to come into the garage. It's never actually stalled from it though.
Also, please let the bike warm up a little before any revving - oils and gasoline thin out slightly when warm, so you aren't getting the normal lubrication and air/fuel mix until it's all warm.
As far as the fuel smell goes, it's possible your bike had its air injection system removed, and potentially its catalytic converter gutted. I wouldn't worry about it unless you're getting a very low gas mileage. When I'm gentle, I get 41mpg on a stock bike (and I'm a very big guy - I present a LOT of wind resistance).
The posters above were right about that "broken button" - it's for the emergency flashers on Euro and other models. We don't get it stateside.
Hope this helps, and welcome to the community!