If this magneto dealio is for the N15 you are working on (beautiful work so far), as mentioned a small magneto housing would look best with the Thorspark EI inside it. The K2 is a monster size magneto. JH magnetos are shorter wider probably pretty good and would be a relatively easy install in the standard magneto location. To me the only advantage of a magneto is you can get away with not using a battery. Great for a race bike.
I had a big rebuilt Lucas K2 on my P11 for years. If my memory serves the brightness of the lights were RPM dependent when I had the magneto on there. Things may have changed for street bike lighting with a magneto and no battery since I did that though. I took it off in the early 1990's. If I were to ever use a magneto again, I'd keep the battery I'm currently using for the lights. It weighs less than my wallet. My current ignition system weighs less than $4 in quarters.
My opinion means nuts. I only responded to tell you I like the work you are doing on the N15.