Honestly, I have to agree that the MP7M, while a very awesome idea, and more than certainly rightly needed, has more than its fair share of drawbacks.
While the obscene recoil, tiny clip (even at Medic 5), and low punch are issues, I'm perfectly aware its a backup weapon. Still, I'd almost think its a bug that the clip size is increased but the total bullet count isn't. Look at the commando perk, clip size is increased on their weapons but the total clip count isn't decreased as a result. Seems to me this is a bug or just flat out something that was missed. However, if it was intended, this would be the biggest thing I'd see as needed on the weapon.
What I really wouldn't mind is the weapon being set into a three round burst fire by default. Sure, you can't full auto by holding the fire button down, but considering its rate of fire all you'd need to do is tap the fire button fast enough and you'd basically have it going at full auto but with more control.
Though, I'll be honest (fanboi), I'd love to see another medigun, maybe serving as an upgrade. Something like an FN-P90(M) with a syringe secondary fire and a deeper clip, something to dish out better damage against tougher targets in close range, but costing more, really just to give the medic a chance if he's cornered and needs to finish off a Scrake charging for him. I mean, yes, he's supposed to support the team(more than the Support Specialist

), but having a nice punch to tear up a Siren or Husk in a pinch while the team is moving would be appreciated. I mean, I'm not holding my breath, but it'd be nice.
Oh, and yes, faster reload and draw time would be appreciated. Seriously feels like you're actually pulling it out of your backpack everytime you draw it. I mean, if its a weapon designed for the medic on the go, for, you know, saving people's hind ends, you'd think it'd be streamlined expressly for that purpose. Unwieldy and Emergency Medical generally don't go together.