I don't have a 535, but will speculate that you probably aren't far from the norm if its serious stop and go driving. If its mixed city/HW, then you might have an issue. Since your OBC has issues, try taking it out for a calculated run on the HW with a full tank. Stick to the speed limit and fill up when you get back. Do the math to see what your pure HW mileage is like. Other than the mileage, how does it run. Hows the idle? Hows the power throughout the rpm range? Does it 'miss'?
Maintenance questions:
Plug condition?
O2 sensor changed in the last, I dunno, 40-50k?
Vacuum leaks?
As for the gas gauge and OBC range featue, I believe its somewhat common. My gauge dives fast between 2/3 and 1/3, then sits forever.
Someone with a 535 will be along soon. I'm just up early killin time
Dave