I'm 5'7", 130lbs, inseam 30". Would bikes with seat heights of 35" be too tall for me (like the DRZ400, XT350, KLR650)?
Also, would a KLR650 be too powerful and/or expensive on insurance for a noob?
I also have a 30" inseam. My fourth bike is an XT250, and it is the most fun I have had on two wheels. It is fine on the highways, brilliant for commuting in the GTA, good on the dirt (though a tire upgrade is desirable for real mud or sand). I have wiped out in mud: just lift up the wee thing and start over. I can flat foot, though as stated above that is not at all a necessity. It is light and nimble and easy to start off at full lock. I spent this past Saturday with Trailtours: highly recommended. So yes, a small dual sport is a great option. XT, KLX, CRF, WR (the champ of the 250s). Sit on them all then buy a cheap used one. All of them are bulletproof.