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Just bad design overall then. Should have made it 38mm, much closer to the original and would have complimented layout and movement. They've only put "automatic" down there as even they know it's not well balanced. Seems silly to me when a company of that history has so many options.
Second model you added is much better for sure. Not so fussed on the whole heat treatment blue hands myself either.
Personally I think it looks good with small seconds but it's sat too high and close to the centre. Should have stuck "Automatic" under Longines and moved the small seconds lower down.