It's a good thing that you are at least considering something smaller for your first bike. LIke you said, odds are that you will drop it and it will be expensive if it's a new bike.
I would recommend getting a used 500 bike for your first bike. If you have never riden a bike before even the 500 will be a lot for you to handle. Ride at your own pace and learn that bike, you will probably never test the limits of the bike on the street. I would say keep it for a year or so until you feel comforable riding.
As for the drifting question, yes you can do it. The only place to do it is the track. If you do it right the bike will spit you off and lauch you into the air
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CLICK HERE FOR PIC Look at the rear tire and how it's leaving a black mark. I know that rider personally and he's been riding for years and it takes lots of practice.
Also insurance will be cheaper for you on a smaller bike since you don't have experience.