Yep, when successful, the light goes out. That's the whole reason for doing all of it, but you will have to move / ride the bike 10 to 20 feet or so. The light went out on mine when the bike was moving. The distance is not as important as the movement of the wheels in the same direction for a short spin. Maybe you can do it with everything still apart and on the center stand by moving the wheels with a good spin on each one in a forward direction. Dunno!
But, if you got on it and rode it, it sounds like you did everything right. When i did mine this spring, i held everything for 45 seconds at least. Then rode it about 10 feet and the light went out.
If it's any consolation at this point for you, my Japanese mate with a '92 K1 tried resetting his for the past 2 years without moving it and the light stayed on for the past 2 years. He had tape over his light too. i kept telling him (only because people kept telling me) that one must get on it and ride it and if it's not a faulty unit or if the reset action was properly done, it will go out. He did the same process he has done for the past 2 years once again, and then rode it on the driveway to the street. His body language was such that anyone could tell he was ecstatic at the light going out. And i verified it just in case.
For you, either the process was not followed properly, your battery is dead enough to not let allow the process to work for you, or the ABS unit is bad. There may be other reasons. Those ABS units are like tanks, and it's is only a rare one that goes bad (IMHO), so something's up with either your process or the distance you move the bike, or your connections. Something.
Check your process as documented on this site by the K gurus, hold if for 50% longer than you did last time, and repeat it all several times, increasing the % each time if you must. If it's not a faulty unit, you will have success. Worst case, you may have to research other reset methods. For what it's worth, none of the K1 boys (in the K1 Club of Japan) over here have ever experienced a faulty ABS unit on their bike. They all swear by the reset process you are grueling through now. Check the wires to make sure you're getting a good connection all over. Change your ground location if you must.
i am a flaming and screaming advocate for the process, as you can tell.
DON'T GIVE UP. You're almost there.