I'm not sure that they didn't have a very long time under seerow to gain working knowledge of the technology. When they attacked the andalites they already had pool ships set up. It takes a long time to design and then build a ship, so they may have had a significant time to learn. Even if the ships were rigged ad hoc, it still would imply a long period of time just to understand and replicate the kandrona, and build computers that could be used by the yeerks.
Once they had the ships they weren't working from scratch, they had a huge database of information to work with.
It still took several years before they had developed the means to design their own versions of the ships and handheld weapons, which falls in the general time frame for reverse engineering technology. Now the means to actually produce them I'm not sure about since they would have to build the industrial infrastructure first.
Also they didn't truly develop anything uniquely their own that we know of, except for the antimorphing ray which may or may not have worked. So all of their technology may have been reverse engineered.
The thing that got me about it though was how effectively they fought the war with the andalites, they had the andalites at a stalemate without much experience at fighting, whereas the andalites had who knows how many years experience fighting.
Now as to the yeerks preference for intelligent species, I've got a few ideas. First we need to consider what the yeerks need in a host. Assuming they're infestable, a species needs 3 things to be suitable as a host, good senses, an ability to move, and an ability to manipulate objects, such as hands or tentacles. Now most species on earth that have a decent ability to manipulate objects are very intelligent, apes, octopuses (octopi?) for instance. There also needs to be a lot of them available, this would also imply an intelligent species since they would have the ability to survive beyond the typical outproduce-the-dangers approach and take ways to reduce or eliminate the dangers. They also need to be fairly well concentrated, they had mentioned one species that could be infested but had spread out so much that they weren't worth taking.
I don't think the yeerks have much more ability to fight the instincts of the host than the host does, the series often mentions times when the yeerks couldn't control their facial expressions ( I believe Jake's yeerk was made by a microexpression), which are instinctive, well some are, or the ANS responses of the body. I also wouldn't discount how strong instincts are in intelligent species, I don't think they aren't just as strong, I just think they don't come up as much. People who have been put in survival situations often had strong urges to do things that have saved their lives without ever knowing why.
I always wondered how much the yeerk was affected by the mind of the host it had taken. Take Taylor for instance, the yeerk that took taylor was supposed to take a much more important human later, but decided she (for simplicity I refer to yeerk's by their hosts gender) liked the feeling of being beautiful so much she stayed in her (or something like that) which was one of the things the host felt. It's hard to say because we don't get much about the yeerk before she infested her. I don't know much about the yeerk peace movement but I'm pretty sure it started with yeerks who had human controllers. There's also V3, who although was always calculating and ruthless, didn't seem to develop his deep bloodlust or extreme arrogance until after he took an andalite, who was extremely arrogant and did have a deep bloodlust. Since the yeerks had only taken a few species en masse it's possible that the yeerks themselves didn't know about this. The Hork Bajir were described as being so simple minded that they didn't really understand what had happened when the yeerk had taken the HB, the taxxons were single minded from their hunger, and the gedds were implied to be less intelligent than the HB. The only species that did have complex psychologies before the yeerks started taking humans were so few that there probably wasn't any notice of it.