Without Dual Rates, go to your RX and dial back the Ele/Ail Ext pot to reduce servo travel .. Similar effect as dual rates 'on' ..
You are correct about switch #2 ... This turns the 3in1 Balance Mode on/off ...
I have no idea how the RX / Heli will perform with this turned off.
I tried once with the Ele and Ail adjustments turned down to about 20% and on take off I promptly had to install a new set of rotor blades / tail blades / main shaft / gears.
Using a FB Head 'should' compensate for this, but as I have never tried it, I can't say.
Still, I say stick with the stock V200 setup and take it slow instead of altering it. This is just added expense that you don't need when your starting out.
Maybe I am missing something, but adding a FB will only do the same thing as the 3in1 unit does now, so I don't see how it's going to help.
After already spending $1000+ on my Belt CPv2 and crash repairs, if it hadn't been for my V200 I would have given up on Helis all together.
As for the outdoor in the breeze / wind flying ...
Sad to say, but I don't think you will get much better results than your Blade 120 ..
Yes bigger is normaly better, but I would need 10 hands to count the number of times my V200 hit the dirt due to a slight breeze.
My Nine Eagles Solo Pro V1 is more stable outside in the wind than the V200.
Again though I can't compair with larger FP Helis that have FB, as the only FB Heli I have is my Belt CPv2 and that's a whole different kettle of fish.