Your world is full of PVC, from the plumbing pipes and wiring insulation inside the walls of your house to your shower curtain and many of the plastic parts inside your car. California simply has more stringent “warning” label protocols about trace chemicals in manufacured items than most governing entities. The products and materials that surround us are all full of potentially “hazardous” compound (there are deadly natural toxins that can occur in honey and in peanut butter, for example) but the likelihood of long term health damage, let alone short term, from them is vanishingly tiny. Unless you are among the rare number of individuals with genuine oversensitivity to many chemicals, the normal offgassing smells from new plastics are just annoying and will fade over time. Leave your boat (deflated) outdoors in the shade for a whike until the odor fades.
As others have noted, your watercraft is more of a raft in design than a kayak. The low to mid priced inflatables lack the streamlining and structural rigidity that assures good tracking. Sea Eagles’s higher end drop stitch floor and wall models (the 393 Razorlite series) perform much better than the model you have. A craft that short and wide is not going to glide and track well no matter how you load it. The skeg will help some, as will working on paddling technique, but you will always have to contend with it being flexible, flat bottomed, slow and susceptible to wind and current.
Incidentally, are you inflating it sufficiently using a pump? Also, inflatables will lose pressure when you put them in colder water after inflating them on land. Just as heat will makes them expand (even leading an inflatable boat to rupture if you leave it sitting in hot sun on land), when you are in cold water it will lose pressure. I have folding kayaks with inflatable sponsons — if I inflate them by mouth I usually have to top the air off after they have been in the water for a while and the air in the bladders has cooled and lost volume.
By the way, if you would carefully read the summary about PVC, the dangerous emissions come from burning PVC (and from chemical processes used during manufactiring) not from the normal condition of the material which is stable. In fact most of what you are smelling now is residual solvent from the glue used to make the boat, not the PVC itself. Your decision to discard it (meaning it would degrade in a landfill or be burned) would be what created toxic emissions from it. If you are going to buy an inflatable boat of any kind, odds are it will be made of PVC.
So your decision to get rid of it because of the material is, frankly, not rational. Getting rid of it because you don’t like the performance would make sense. If you are paranoid about synthetic chemical based materials, you will be hardpressed to find many boats of any kind that are not made of them. Even wooden kayaks are usually coated with synthetic or naturally somewhat toxic materials.