Let's not forget there would be an increase in empty weight as well. This will nullify the other advantages.
The LCA mk1's internal estate isn't particularly good. So, this affects aerodynamics. Increase in length would primarily be to accommodate more avionics and also more fuel.
Nullify is great! How much weight MK-2 is expected to gain because of 0.5 m long fuselage and 0.5 m longer nose? At 6.5 ton LCA is 13.20 m long, not very had to predict with 1 m increase or at 14.20m (which is not even 10% over the present length) how much it would be?
Here few things needed to be mentioned.
*It is not the more powerful engine alone which will improve the performance rather it will a bunch of improvements which will instead.
*Length is being increased to accommodate extra electronics and more fuel but one can't also deny that it might also mean re-distribution of internal hardware and re-shaping of center fuselage for better aerodynamics.
*Prime reason for reduced performance in MK-1 was smaller (than required) air intake and it had much of its influence on acceleration, combat payload, drag/lift etc. With MK-2, ADA is not getting powerful engine alone but also appropriate air intake which will let engine work at optimum level (unlike that one in MK-1) and hence won't face problems like MK-1 faced.
All in all there will a quantum leap in performance from MK-1 and there are ample reasons to believe it.
The NG is only 200Kg higher than Gripen C, but it's capabilities are much more than Gripen C.
The Mk2 may have a better internal estate because of the extra length. But the avionics carried on the NG is simply ahead of the planned upgrades for the Mk2. Let's not forget that AESA is meant for MLUs and not for FOC, whereas NG will come with an AESA radar installed for FOC.
The Mk2 will have inferior payload to the NG anyway. Saab says NG will carry 6.5 tons compared to ADA's goal of 5 tons on LCA Mk2. More importantly let's not forget the NG will have way more hardpoints than LCA, which simply makes the biggest difference in payload.
LCA isn't meant to be a fully multirole aircraft like the NG. It is only meant to fill IAF's ASR from 1986. NG is more of a 2007 ASR, more advanced meant for much higher requirements.
NG is not 200 kg heavier than 'C' model rather than 'D' model which itself is some 300Kgs heavier than 'C'. If some Swedish posters are to be believed that NG is nothing but re-engined and re-engineered D model. So effective weight increase is anywhere above 500 kg in comparison to present C model.
Well it is upto your belief that MK-2 wont carry AESA from day one. As far as i recall ADA brochures from AI-11 had only MMR written and in no case it means a rotating dish MMR only, AESA and PESA both are MMR. Furthermore if Prasun Sen Gupta is to be believed than MK-2 will have AESA integrated even before it gets engine.
Where it is started that NG is having better avionics than MK-2 can have in future? In contrast LCA might even get same AESA MMR.
About the payload. It's very very interesting. Gripen is a jet from cold temperate region and LCA is from a mix of hot tropical, hot humid tropical and desert region and all the data generated is as per its performance in these reasons. Now how hard it is to understand one simple fact that engine performance decreases with environment and colder stands for positive and hotter for negative/reduced performance. And another one that combat load, range etc depends hugely on actual thrust. Do we have IAF documented test data of Gripen performance in public and why should one believe that SAAB is using anything but SAF data only for preparing brochures? Still i don't claiming that MK-2 will have equal combat payload lifting capability but alos not refraining from saying that whatever difference might be it would be more or less irreverent in Indian conditions.
NG has 8 hard points 1 pod attachment while MK-1 has 7 hard points and one pod attachment. Not a big difference. One can also say MK-2 might also extra hard-points.
LCA MK-2 will be a fully multirole fighter jet like NG and Mk-2 is not going to be as per 1986 ASR which even MK-1 surpassed in terms of technology and reduced perforce in MK-1 is because of IAF moving away from 1986 ASR in addition to some design features.