it sounded strange to me too... the motor should be putting out plenty of power to run the lights and keep the battery charged, right? there is nothing i can find in the owners manual about not running the lights for extended periods of time either.
as for handling, it was incredible. i dont have much to compare it to since i havent really ridden any other quads for more then two minutes... but to put it in perspective, my inexperienced self was going up and down some pretty gnarly jeep trails, and my buddys yzf450 (i think thats what it is) didnt stand a chance of following me. he was high centering all over the place. the rear end on the 700 isnt as easy to break loose for donuts as the solid axle, by far - though i think ive got the suspension set to the softest pre-load, which is probably contributing to that as well.
and from what i can tell, PLENTY of power. looking forward to getting a pipe, HMF probably. they seem pretty decent from what ive read.