Yes it would. I have two -99 stw mk1 Foci, one with the 2,0 engine (cast iron) and the other is the 1.6 all aluminum Zetedc-SE Yamaha engine. First of all, the external size difference is very noticable, with the SE being much more compact. Secondly, the steering response is very different, with the lighter feeling much more like a go-kart and the 2.0 more like a Volvo.
If you ain't going to turbocharge it, just use a Duratec-HE instead.