Welcome and thanks for re-homing. Sounds like you have a bird like my Dorian who was never allowed to fledge and therefore doesn't really know what his wings are for. I think the hanging on and flapping is adorable and a good indictator that he may fly one day. As for the stepping up, it took Dorian over two years to step up onto my hand. He came out of a pet store where many children, and frankly some adults, used to poke cat toys and fingers through the bars of his cage, so he came to me very afraid of hands. He would also step up from the floor but never from his cage. My first success was very much controlled by him. He decided that one of the outside perches on his cage was his step up perch, and that when he went to that perch he was ready to be picked up. I don't remember how long it took me to realize this, but the dumb Hooman finally clued in. Just continue to offer your hand as an option to him, and if he doesn't choose to step up that time just tell him that's ok and walk away until the next time.
Your wife took an absolutely gorgeous picture of Smokey. I mean, yours were good, but . . . Of course, you both had a good subject. Smokey is beautiful. Keep browsing around the forums, asking questions, and tuning into grey time. Again, welcome.