You are correct about the O2 senor eliminator. Bikes with an O2 sensor in the stock exhaust operate as a closed loop system in a specific operating RPM range, and can not be adjusted by the Power Commander alone. If you make adjustments with the PCIII in the closed loop operating RPM range area, the O2 sensor will sense these changes and the ECM will alter the fuel curve accordingly. In other words, the ECM receives a signal from the O2 sensor, see's a condition outside of specific parameters and makes what it feels are appropriate changes. Basically negating any changes in fuel mapping you've attempted to make within this specific closed loop operating range. Installing the provided O2 sensor eliminator is essentially allowing the user full fuel management control over the entire RPM range of your bike. About the only downside is supposedly a slight decrease in fuel mileage.
These add-on fuel management devices that plug in between the ECM and the fuel injectors are just altering the signal sent from the ECM that controls injector timing and duration, based on "their map." This ability to alter that signal is what's allowing you to make changes to the air fuel mixture (i.e.. richer or leaner A/F mixture).
As far as the Power Commander V.... Yes it will create a custom fuel map, with the additional cost of the add-on that gives this device the ability to map it's self. Keep in mind, you would need some sort of provision welded onto your exhaust to accept the O2 sensor, for this device to work. My personal opinion on these devices is this... sure they provide some perceived gain and you didn't have to pay a tuner to dyno tune your bike, but I think we're asking a lot from this little device. I doubt these devices, like the human dyno tuner, are sophisticated enough to really analyze exhaust gases throughout the entire RPM range and create a truly optimal air/fuel ratio for all throttle positions and Engine RPM. If you didn't already have an EFI controller and wanted the latest one offered, that's a different story, otherwise and as far as the auto tuner is concerned, I feel it boils down to money best spent somewhere else. Plus once a custom map has been created for a "street bike" there should be no need to "re-map" unless you changed something on the bike.
I would do the quick shifter. I've ridden a few bikes with them. Lots of fun. Full throttle clutchless upshifts!