my take on the subject...
The V1 isn't going to happen... accept it
The logic of wanting that intake (keeping the car stock appearing) isn't much of an arguement. The old V1 intake looks nothing close to stock except to keep the turbo blowing towards the rear of the motor. You will retain the problematic O-ring adapter and it's "narrow" passage for air transition.
The V2 is leaps and bounds ahead of the V1. You elliminate the narrow air transition into the motor that alone allows for additional gains. The problematic o-ring adapter is simply "gone."
No longer will you have the throttlebody leading to the turbo itself and driveability is improved significantly.
Brent... I sense you are a "purist." A purist wouldn't want the V1 intake because it looks nothing close to stock appearing. In your case you'd want to have a speed shop near you to gutt your stock intake and reweld it's runners. Perhaps you'd pay someone to run that abbrassive putty solution through it so you can gain a tenth or two in et (your looking at $450 for 2 tenths... not worth it IMO and I researched that three years ago).
Your recommendation of a bigger turbo is your opinion. It will not come close to adding horsepower like the V2 set up will. If Jay is offering this setup for less than $1,400 I'd jump on it (in my case I already have the setup

Pics of the intake are on the "Hot-Air" website (84 members and growing!)
Hot-Air Website - Sign on up!
I encourage you folks who are contemplating this system to step forward and make a purchase. In doing so you will assist a loyal vendor who needs your financial support. There are no other vendors willing to step forward for the "Hot-Air" community like Turbo Motion and S&S. If they go away from a lack of support from us... I can only be inclined to look at all of you and say "I told you so" and my highly modified intake will then become worth double what I paid for it.
Jay is an outstanding guy. Give him a call and you'll see he is more enthusiastic about these cars than we are. If I was in his shoes I would up the price for his products because of the extensive effort that goes into making this happen for us. The guy works 7 days a week and takes no time off. He deserves our recognition.