If you did succeed in reaming out the mandrel to a larger size, (won't be much anyway) you will find that 2MT equipment then goes in deeper (You won't make it to 3MT, even if you can cut the mandrel) and this could cause you problems with some tooling.
You will have gathered that the general advice is "Don't do it".
I was equally, if not more, frustrated, by the small size of bar that would pas through the mandrel, so sold my ML7 and bought a larger lathe.
If you want to stick with a Myford, you need one of the later models, Super 7 Sigma, with a 4MT mandrel
Going from the sublime to the gorblimey, my current lathe has a 5MT mandrel!
Howard