The handle is only inserted to move the pawls, then its removed before starting the engine. There are holes all the way around the light blue disc, so they can pick a convenient one when they want to change the pawls. There will be a brake band in the groove on the far side of the pink drum, to hold the drum from moving when changing the pawls.
Ah... THAT's what I was missing! The handle doesn't stay in place, and you don't change the position of the pawls on the fly. They're either engaged or not, when you start things up. OK, that makes sense.
Besides, changing the engagement of the pawls on the fly seemed a little iffy without some kind of clutch mechanism there. Seems like the ends of the pawls would get chewed up - or the inside of the yellow wheel, or both.
Makes a lot more sense this way! Thanks for the explanation, Chris!
Kim