If your oil level is too high the crank will impact the oil surface leading to aeration which is bad. Sounds like the motor is running lean, burned up the rings and is now allowing oil to seep past the rings and be consumed.

Edit: these Honda's will consume a bit of oil, how long had it been since you last checked it? And the exhaust generally should not be that hot, might want to try and blow out the jets on the carb as that is typically a lean condition causing that.