Modification of HelloWorld-Baremetal-ARMCC Example fails

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However when I add an additional line of printf("message"); I do not see this output on the console. Why does this happen?

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Try add "\n" to end of out string, as this:

printf("message\n");

Line Feed or Carriage Return chars usually must be in output text to see it in console.

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If I want to for example, blink led's using delay (in C), where would I write this line of code?

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Debugger in DS-5 help you find this place -- where LEDs make one blink step, there may insert dummy loop like:

for (int loo = 0; loo < 1000*1000; loo++) ;