The drive train would have handled the 3.2 puma fine, the gearbox is almost the same as the ranger/bt50 which also has a 130 in wheelbase

 as for braking??? Defender already has 4w discs compared to most others with rear drums, the wrangler has a 2.8 tdi with far more go, along with a 3.6 petrol, navara has both 2.5 and a 3.0tdv6 with drums on the back, hilux has the old 3.0tdi and a 4.0 v6 with 200kw and drums on the back. AND they all run with rear leaf springs.
The 3.2 td5 puma is built in both the u.k and Thailand, but was uk only built for the first 12-18 months. This means LR knew about it well before ford put it into the ranger/bt50 but chose not to bother putting an engine in the rest of the world would want more. This could have seriously increased sales outside the U.K as it would have made the auto option as simple as fitting the mounts, along with greater demand for all manual models outside the u.k.
To me basically the defender for a long time has been the poor cousin, getting hand me downs and patched up bits to keep it going. Any real investment was taken elsewhere to build up other models, in the fear that giving the defender any more appeal would steal sales from other LR products. 
In the mid 90's they chose not to put in the disco1's airbag setup so lost the USA market for defender, result is a 83 on defender we pay 5-45k for they pay 40-120k for and are!  In australia we had the 3.9 Isuzu which outsold the petrol and relegated the landrover diesel akin to selling ice to Eskimos , it was competitive with toymota and Nissan , but did LR take notice and make this a ROW model option?
As to cost, a merc g-wagen 350 diesel(3.0 v6td with 155kw) costs over $150,000, there is no way putting in ashcroft axles, cv,diff, either a 3.2 puma or a 3.0 tdv6 an x-eng disc handbrake, and a basic airbag setup is going to add more than $10,000 to a defenders cost. It already has a 6spd manual, throw in the fords auto for the one legged and some sound proofing for those who like to hear what others say in the car and it will be another $2k at best.
 Which would you chose, a $50-$70k defender with a 180kw tdv6 , 7 seats and factory 255/85's (33in)or a $145-180k g-wagen 5 seats and 265/70 r16 ,31 inch tyres?
2013 Mercedes-Benz G350 BlueTEC MY13 7G-TRONIC All Wheel Drive
Merc sell these happily alongside their ml and gl SUV which are all in the same price bracket with the same engines. They do the AMG version at another $120k on top of the standard price gl350 (around $260k for one of those)as a draw car, would LR honestly lose any RR sales with a special edition defender with the supercharged v8?
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