I hadn't realised that there's an obstacle penetration on approach to the shorter runway, but no understand why you've been advocating MLS. However, if it's only a slight penetration, an offset ILS might be workable. That'll depend on the amount of offset that's needed, of course.
As for airspace, I don't see the UK CAA opting for anything like a MBZ. However, ICAO provides a minimalist ATC structure called an Aerodrome Traffic Zone (ATZ). Given their well documented track record of conservatism, I think that this would be an option they'd explore in this instance.
An ATC facility could provide real-time weather observations which are always helpful to pilots in assessing the likelihood of a successful Cat 1 approach. So, while a Tower wouldn't be busy at this place, the weather information would be a distinct advantage.
I suspect that the speed with which anything happens at this place will be linked to the degree of interest by airlines in scheduling flights to the place. After all, it's usually the airlines that drive these things and, if they're not pushing it, we probably won't see any developments during our life time.