Is the spindle itself extended or is that just an adapter? I have an old Rockwell that came with the male jacobs taper on the spindle and the nutty old timer who owned it before me actually completely cut down and rebuilt the spindle so he could mount the adapter up inside the head rather than letting it stick out like that.
That is the spindle and not an adapter in my opinion. I have a 16" Electro-Mechano 601J Drill Press that has a long MT2 spindle, an X-Y table, quick release vise, and variable speed with a back gear, plus a collection of MT2 drill bits and other MT2 adapters that can be used on my lathe. My ER32 holder with MT2 shank doubles the flexibility of the drill press by allowing the use of ER collets. 3-jaw chucks are designed for bits that are of softer material in order to grip the bit shank. A collet will allow you to hold hardened tooling including solid carbide drills, end mills and even router bits. Tool holders and tools can be swapped between the lathe and the drill press.
Gleaned from the web (and GJ):
Morse taper #2 sleeves allow using either Morse taper shank drills or a chuck with a Morse taper arbor. The extended length is to allow for the extractor slot to be accessible.
The reason for removing the chuck was that there were several accessories that could be installed on the drill spindle in place of the chuck to allow mounting Morse taper drills, buffing, grinding, routing and shaping wood. These can be used if you want the flexibility of being able to use Morse taper shank tools, either drill bits or different types of chuck.
Some are of the opinion that a #2MT has limited application in a small DP. These small DPs are mostly used with a chuck and round shank drill bits. The range of drills for the #2MT is 1/2"-3/4" and most of the holes a small DP drills are <1/2".
The #2MT spindle with an adapter and chuck puts the point of the bit several inches further below the bearings than where it would be with a JT33 chuck. This extra wobble makes a crude machine even more so.
One advantage of the MT2 is you could drill a hole down in a deep casting using a normal length drill bit.
You can buy drills with MT tapers on them and eliminate the chuck completely. These are usually used in machine shops and also lathe tailstocks. The drills are usually stronger and more accurate than drill chuck and will also slip less as most have a flat tang that locks in the drill press spindle.