at 800 miles the chain will have stretched the most that it will in a single interval if it hasn't already been adjusted.
yes at high rpm it closes the butterflies and rolls the power off, the reason is to give you a natural falling over feel so you shift up and maximise the torque curve.
also, in stock form I've seen these bikes first hand (100% stock, standard tyres etc) do 1:35s around phillip island, with traction control set to 3.
the asbk bikes do it in around 1:32 so you're really not leaving much on the table, and that is a damn fast track (motogp hit 340-350kmh on the front straight), josh waters was using a low level of traction control as well on the island.
if you think its a waste of time you don't know how to utilise it. the bikes quicker with TC on than off on most track when ridden by professional riders.
definitely worth it, but 100% agree with getting it flash by Karns performance, they also take some of the low rpm bucking out from what I've read
also, you see how you said float the front wheel, that's exactly what the TC is eliminating, it's one of its jobs to keep the front wheel down, or in lower settings it'll let it carry a little.