You can ignore the warnings. The error is caused by an outdated createproject.sh indeed. But it is easy to fix. Just check out the generated source and also check out simple1 app (or tutorial) to see how it should be instead.
I confirm what you said - for those fallen in this issue and to have fast a simple app to toy with do as I did:
- launch ./createproject.sh fulfilling the reqests and name the project as you want, i.e. myapp)
- cd myapp
- copy everything in the tutorial folder simple1 BUT jamfile into ./src folder
- rename src/simple1.cpp to src/main.cpp
- launch ./configure
- launch jam (a lot of warnigs will come out but no fear)
now you should have a working binary named as you settled in createproject.sh
NB: I've tried also with waterdemo
and it worked so I suppose the same process could be applied to every tutorial app.