Mine 1980 XS650

Cool build dude!
You shouldn't need a starter relay if you don't have a starter. The relay is just the heavy duty switch that can handle the larger current flow used by the starter motor. The start switch is not able to handle this load, so it runs the relay, and the relay handles the current. If you have pulled your starter motor, you don't need the relay.

I would be really careful with the rear connections to your fuse block, and maybe put some kind of insulating material on that upper plate, above the terminals. It looks like it would be pretty easy for one of those terminals to hit that upper plate and either blow fuses or make sparks. It might just be the camera angle, too, though.

Keep it up man, love me a good XS build!!
 
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