The stick is the same in MK2, it's just rotated. So the awful swing-time from one ordinal to its opposite, the huge dead-zone, and the inaccurate, sloppy feel are still there. The new stick caps makes it feel a bit less awful, but it's just ultimately acting to try and lessen the blow. For me, it doesn't really work.
Yes, components aren't falling off left and right like they used to. But the headphone jack is still the same, as far as I can tell, it's just soldered on properly now. The jack itself is a faulty design though and requires a lot of playing with the plug to get both sound channels working, or the speakers off, or both. The brittle, easy-to-bend battery connectors remain, and make a lot of people think their machine is dead when the connections to the batteries are just bad. There's a reason most devices use a piece of bent metal and a spring, but GPH doesn't seem to have picked up on this, even though just about every 2xAA powered device made in the last 20 years has been built that way..
The design flaws like the mediocre voltage conversion hardware, part of the battery life issue, remain. So does the broken SD DMA-- which appears to be a hardware flaw in the MMSP2 itself. The scaler and TV out circuitry is still the same, meaning power draw from those components is still awful. If you try to watch a video that isn't 320x240, the scaler will cut your battery life roughly in half. If you are using TV out, you'd be lucky to break an hour, with good batteries...
The MK2 is a step in the right direction but it's far from a real, complete solution as it's often made out to be. There's a lot more work to do.