I toyed with that car yesterday a bit.
No, the electrics aren't turned off. Who told you that? A car salesman, no doubt. What did he sell last week? Toilet paper? No worries; he'll be selling batteries at Radio Shack next week.
For the CVT, yes. Fake gear shifts. On the other hand, since the gear selector has only one forward choice--"D"--I figure the paddle shifters can be good for engine braking on mountains. Come on, Honda--no L? Pinching pennies again? I suppose they think their "fuzzy logic" for the tranny will suffice for "gearing" down on the mountains.
Take it out, see what you think of SPORT mode.
Trust me, SPORT mode does nothing but goose the IMA and run out the batteries faster. The engine is still the gutless wonder down at the low end. That's what hybrids are.
Most importantly (to Honda, that is) is that it has an AT-PZEV rating, the only one on the market. That's Advanced Technology/Partial Zero Emissions Vehicle. The true goal of this vehicle is to cut emissions, not to have great gas mileage (which it doesn't, not for a small, lighter weight, 2 seat hybrid).