What are you looking to do with an ND1? Street car only or autoX? If autoX, are you looking to really compete or just have fun? If compete, how competitive is your local chapter?
It is my understanding that yes, the ND1's engine is directly pulled from a Mazda 3 and rotated 90 degrees. It's an inexpensive economy car engine. Overseas, the ND was designed for their higher revving 1.5L engine, but Mazda NA knew wouldn't sell well here, so they threw in the 2.0L economy car engine to give it some extra torque as tweaking it wasn't in the budget at the time.
For the ND2, they did spend the money to make the engine rev. From what I've read, they weren't really looking for more horsepower per se, they just wanted to make it sing at higher RPM's and feel like a sports car engine. My understanding is that they tweaked the following;
• Lighter Pistons and Connecting Rods: Reduce reciprocating mass and improve revving characteristics.
• Larger Intake and Exhaust Valves: Enhances airflow, increasing efficiency and power.
• Revised Camshaft Profiles: Helps increase performance at higher rpm.
• Dual-Mass Flywheel: Smooths out vibrations and makes the car more refined, especially at high rpm.
• Exhaust Header Revisions: Reduces back pressure for better breathing.
Making it rev just had the added benefit of adding more power.
I believe they have similar reliability ratings (maybe I'm mistaken?). But the ND2 engine is literally just a hot-rodded ND1 engine.
The only big reliability difference I'm aware of is the early transmissions were more fragile, but it sounds like that was already taken care of.