Bike will be able to start even if it's not in neutral and the start will not be depending on the clutch lever if it's pulled or not. Is that right? New diagram is attached.
Per diagram, you have it shown as you describe it.
You don't need to tie the key BRN and BRN/WHT to BLACK. Thats all taken care by BLACK to LOCK. Just saying... And you only need now to ever move the key 1 position to have either TAIL and P or TAIL, P, and IGN.
Lastly, there are 3 programming features in the M-Unit you might think through. You can have all 4 indicators glow at a percentage of full to perform as running lights at all times. Some like to do this for visibility. Depending upon whether you ride in traffic mostly, you might want this activated.
You can set the TURN to auto cancel on a 10- second interval from 10 to 50 second delay. I set at 10, but also manually cancel. Up to you.
And you can force the behavior of the BRAKE light to strobe, flash then solid, solid, fade in to solid, etc. I like strobe to solid because my LED brake lights are VERY bright and you can't help but notice them. Makes me feel a tad more protected from being smashed into.
Final input: Any wire into the left side is purely a "ground" with the exception of LOCK. So you can use 22AWG from the push buttons. (Actually you could use thinner still, but 22 works well for handling and connecting). All the ports on the right side are
switched power runs, so I use 18AWG directly to the components.
From AUX, you'll need basically 4 service runs: TAIL/License plate bulb, Ignition, Gauge back light, Coils. You can only stuff 2 total wires into AUX, so I use a 4-way Molex connector out of AUX. I then use separate wire colors for each run that are standard to Honda to each service segment (BRN to TAIL) BLACK to Ignition, BLK/WHT to Coils, BRN/WHT to gauge) to keep me oriented with stock "wiring" service. It will make troubleshooting and future ownership a lot easier. You can scavenge your stock harness for some of this special stripe wire coloring since you only need short runs. (Same for GRN/YLL, BLU/RED, GRN/RED) etc.
Hope it all works out as easy as seems. You've planned pretty well, so you should be set. Tripping the M-Unit into CONFIG mode can be tricky but its pretty simple once you get it there.