Yep, that's exactly your problem from the symptoms you've explained. Exact same on my 07. To put it succinctly, without the EB there's too much heat running through the ignition because the headlights were wired through the ignition. The EB puts them on separate relays providing a) more light, and b) reducing the heat so your ignition wire isn't melted off the cylinder.
I pried the ignition cylinder out and sure enough the solder had melted away and the connection was barely hanging on; the reason for the symptom of off and on with moves of the handlebars. Re-soldered it, put it back together, put the EB in and good to go! I had already ordered the EB so timing was good for a break
Perhaps your easiest/cheapest option is to go with the DeCosse keyless setup (pm him) and you kill both birds with one stone and about a third of the time!