Looks really good. I understand the brake hoods - did the same thing when I had a fg. I wound up putting the back brake on. I wasn't using aero levers and that looked truly silly.
I can't recommend the flop/chop approach. You won't get anything like the flat of an actual bullhorn, and you'll probably just wind up feeling like you trashed a perfectly good drop bar.
I'd put some clips and straps on there for sure.
I agree with Cyclotoine about the gearing. I live where it's pretty flat and always found 42 x 16 to be pretty perfect. Spinning is good.