What is the break down of Fransaliyim - in terms of suffixes.
Fransa - France, lı - with, yım - I am/Me.
Although, li seems to be a suffix commonly used for forming adjectives: yasli - with age - old, so I think Fransalı is "French", and all together it is I am French.
So "French" is used as an adjective here?
Yes, it is.
It is correct in the same way saying "I am Franceish" is correct
It follows the correct grammatical construction but a word for "French" (Fransız) already exists.
Is "ben Fransızım" an acceptable translation for "I am French?"
yes and it is also the literal one.
google says so ......so it is correct
Is this a standard way of saying 'I am from'? Could I say 'ben Hollandalıyım', or 'o Türkiyelidir'?
Well, get rid of the -dir (in most contexts it wouldn't be necessary here) and yes :)
The -lI suffix can be used to mean "is from X" :)
Translation: I am from France.
I am French - correct.
Does the -li suffix make the word a noun as e.g. in German or does it remain an adjective?
The words with -li suffix are adjectives.
I want to be able to say that some day.
How can I say that I am from Venezuela? Venezuelaliyim?
It's OK. You can't help it.