Sorry to hear about your problems with your Bullet. I have a 2007 Classic "iron head" Bullet with about 2600 miles on the clock. I have thought many times that I may be a lucky one, as mine has been pretty trouble free. I have left the points in mine, as it starts well and runs pretty well too.Other than changing filter and fluids, adjusting and lubing the chain, airing tires, adjusting the rear brake, and messing with the idle air screw adjustment-oh and reinstalling the kick start lever after it fell off on a ride on Vashon Island, its been good. I never use the electric start-I don't even know if its still working. I have charged the battery once. One time it wouldn't start and the ampmeter wasn't working. I took a closer look and found the kill switch was in the no run position (felt pretty stupid!). I did foul one spark plug during early break in. I ride at 40-45 mostly, and occasionally at 50. Once I ran it up to 60 to see how it did, but decided whats the point?
I would load that Bullet up and take it to the dealer at this point. Sometimes, when a guy just gets totally frustrated and fed up its time for help.
Other than some used clunkers I've bought and regretted buying in the past, buying the Bullet was a little scary for me. I had heard a lot of negatives about them. But being an old geezer that actually rode British motorcycles in their hayday, I was just so taken with the Royal Enfields that after a test ride at Vince's, I had to buy my green Bullet.
Let your dealer check it for you. Its time for someone with a new perspective to look at it.
Jon