Hello, Glad you are liking Superfish. It seems to me that if you apply your item padding to the anchor instead of the li element everything will be huncky-dory. Padding should always go on the anchor - as per the official demos.
You beat me to the toolbar/icon thing - a demo of that is planned. Your's looks perfect so it's great to see it will be easy when I get around to it. Cheers Joel Birch.