Hi Gary, I just looked at your photos and blog at Woodenboat. Do you have HK parrels on your sail? The luff/throat hauling parrel is the most important thing to haul the sail aft and get it setting right but I also found HK parrels helped stabilize the sail. You are certainly at your maximum hoist when the sail is fully up but remember that this is will only be the situation in light winds. As soon as he wind freshens you can drop in a reef, then you have all the hoist you need!
As for the engine, it is true that you can sail without one and I have done so, on Arion for 10 years and many other boats in the past. It is lovely to have a clean bilge and none of that complication, but it restricts what you can do when coastal sailing. Since putting a diesel in Arion I have found cruising inshore to be a lot more relaxed and playful. Most engineless sailors stick to bluewater passagemaking. My engine, a 14 hp Kubota, also was designed for separate throttle and gear cables. I have a combined lever however that works well, courtesy of a small brass fitting on the throttle lever with a spring and nut adjuster to control the tension. You should be able to buy them from a diesel part supplier if you explain what you need. If you have a problem I can send you a photo of my set up. It is just a question of keeping the revs up as the engine changes gear.
Hope the weather is settling down there, we are having a late wet here, with a tropical low forming every few days but so far they have passed well clear of Arion. I am doing a non-stop delivery to Sydney in April (Adams 13) and then will sail Arion to the Whitsundays in May and further south next summer. Arion will be heading for Sydney for the summer but we will have to try and have a little rally along the way!