I went for extended mags because it's usually the lack of rounds which kills me on the second enemy I come up against. That recoil which tends to the left is easily compensated for imo.
ALS The NS7 is better than most other SMGs at ADS but i think it's real advantage is that you can just hipfire it at ranged where the VX6-7 already struggles. it also has the damage modell to support this.
Always ALS with every SMG. If you're using an SMG primarily for something else than hipfiring, you should be using a different type of weapon. However I have to say the NS-7 is a very potent and versatile weapon even without ALS. Extended mags is not a bad idea per se if you often find yourself running out of mag ammo mid-fight. I'd suggest first using the weapon without attachments, see how it works for you.
I love my NS-7 PDW! I got it fitted out with an Advanced Laser Sight, Compensator (for my non-Infil classes), a Silencer for my Infil and Soft Point Ammo. I also have a 1x/2x and a NV scope for use during different times of the day. Earlier today I had a nice kill streak on my VS character with it. They never saw me coming .
Some times having no barrel attachment is the best option. Using a compensator on a weapon with extremely negligable vertical recoil is pointles, not to mention it reduces your hipfire accuracy ( makig your ALS useless ) and makes you show up on the minimap from longer distances. You are just gimping yourself with it since you are not getting any benefits, just downsides.
Extended mags, it's already accurate enough for hip-fire and ADS. The weak bullets really demand a larger clip IMO especially to deal with heavy shields. If you want to run ALS for extreme CQC, you shouldn't be using the PDW in the first place since its TTK is terrible for close range. It's more for flanking at close but not-too-close ranges like 15-30m. And you should be aiming for headshots with it or it's a lost cause.