Here's a releasable updated version of the wiring diagram, now showing that the switch poles in the keyswitch are ganged:
And here's the revised regulator simulation:
Circuit operation:
If the ignition switch is off, PFETs M1 and M3 are off and isolate both the charging-indicator lamp and the battery from the rest of the regulator.
If the ignition switch is on, the B+ voltage turns on Q1 and hence M1, enabling charging-indicator current to flow to D+. R8 pulls up the gate of NFET M2, switching on field-winding current. As the generator gets up to speed D+ rises, so that charging-indicator current reduces.
Comparator U1a compares a voltage-divided version of the D+ voltage with a 2.5V reference provided by U2. When D+ > 7.2V (as set by Trim1), U1a output goes low and switches off M2 and hence the field current. That current doesn't drop instantly but decays, due to the inductance of the field winding. The decaying field current means D+ decays too, until U1a output goes high again and switches M2 back on. This on/off/on cycle repeats rapidly, stabilising D+ close to 7.2V.
Voltage-divided versions of B+ and D+ are compared by U1c. (Voltage division is used because many comparators don't have a common-mode input range which is rail-to-rail). As soon as D+ > B+, U1c output goes high (pulled up by R17), turning on Q2 and M3, thus allowing current flow from D+ to B+.
U1b compares voltage-divided versions of the voltages at the two ends of current-sense resistor R11. If the current exceeds a limit set by Trim2, U1b output goes low, switching off M2, Q2, and M3. The field current reduces, hence the current through R11 does too. U1b output then goes high again, switching on M2, Q2, M3. This on/off/on cycle likewise repeats rapidly, holding the current from the generator below a desired limit.
R1 and D1 are the (optional) current limiter for the battery. R1 limits the battery-charging current and results in that current reducing as the B+ voltage nears the D+ voltage. D1 is a Schottky diode with a low voltage drop to bypass R1 when the battery is discharging. R1 and D1 each dissipate about 3W (respectively during charging and discharging of the battery). If chassis-mountable versions are used they could be fixed to a metal plate acting as heatsink and housed within the headlight bucket.
R11 and D3 each dissipate ~600mW-750mW. A wide circuit-board track would heatsink R11. M3 could be mounted via an insulator on the wall of a metal enclosure for the regulator.