Good points.
Thanks ruairioflaherty for at least theoretically validating what I was hearing.
The two things I'll note are:
1.) It would seem that to add a ratio control, all that would be needed is variable gain to the opamp driving the 500R resistor going to the LED. This would also be the point to add bias (if required) as suggested by Henke.
2.) I think that both the attack and release are WAAAAAAAAAAYYYYYYYYYY too long. Like chasms and light-years too long. On paper the release is a max of 5.5 seconds ((500K + 50K)(550e3) * 10uF(10e-6)), and Attack of 0.165 seconds (500K * 0.33uF), yet in a practical circuit, that time is significantly extended by the dynamic properties of the circuit being charged continuously by a varying input. If I set the attack and decay both to zero (i.e. about 0.5 second release and 0.000033 seconds attack (assuming you current-limit attack using a 100R resistor to avoid overloading the attack-buffer op-amp, or in the real circuit the capacitor ESR is higher than this)), the circuit seems to produce a fairly pleasant but flat-line crushed sound (probably good for vocals, but not much else).
So I think I need to do some work to tune my VST simulation, but I feel this will also help inform some changes to the real thing, which I have the parts to build also, and probably should for reference, and to measure against.
As for a tutorial about modelling a VST based on a real circuit, my suggestion is to read the QUCS user documentation, and some of the technical details here:
http://qucs.sourceforge.net/, specifically:
http://qucs.sourceforge.net/tech/node16.html. I'm currently using a customized variation of Newton-Iteration/Fixed-point iteration and some other secret-sauce, beginning with an MNA nodal-analysis and s-domain frequency analysis for a 3-variable network (which is enough to describe the full circuit including the feedback-loop) in real-time without approximation. What I mean by "without approximation" is that I'm doing the full solve of all components, with as much detail as a spice simulator would. I'm not substituting models for simpler ones. This involves a real-time iterative solve of a 3 diode network (the two diodes in the side-chain + the LED diode), requiring 4 exponential evaluations per iteration (2 diodes + 1 led + exponential response of the optical element resistance). The details of how to do this fast enough for real-time use are trade-secrets for the meantime. Once I finish my commercial plug-ins, I'll be releasing some technical papers about how I do it. There are some things I've discovered that are new, and would constitute new technology for real-time simulation of circuits with regard to high-precision and low CPU usage.