The gap between 2nd and 3rd is the bane of the 336 and 352. The 365 is perfect in that regard.
When I 1st sprinted my S2 the gap was very noticeable, but by taking the rev limiter off & using 7k on an 807, driving harder & faster, changing from road to racing tyres then slicks it wasn't such a problem, still there but not noticeable.
New engine will have more power, torque & more safer rpm.