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Or a bad shifter fork. Does it have a wet clutch? If it does hoppefully you didn't place sinthetic oil in the bike. The clutch will slip like no other. I would also check your front gear cog for any damage.

You can adjust the rear brake for better usage. I am 6'4" with very long legs and noticed the same problem when First got my YZF600r. I can now ride very comfortable on the bike. As far as getting a bigger bike later it will still not help you as far as seat height or anything. If you put the measurements of the lager bikes side by side of the smaller bike you will find that the over all dimensions are roughly the same on all of them. The only differance being the much more powerfull and insanly faster motor.