Hello AntsC, I'm no expert but I have used 2 cam Pryde sails for a while, so hopefully I can assist.
The first issue is that the position of the pulleys in relation to the bottom of the extension isn't the correct reference point for your dowhnhaul. In the bottom photo I assume you have the bottom of the mast sleeve folded up. If you fold that down the bottom of the sleeve is your reference point. So if you have set the extension + mast to equal the recommended luff length the bottom of that sleeve needs to be aligned to the top of the bottom fitting on the extension for you to have the sail rigged with the recommended luff length. I'd say, looking at that photo that with the sleeve folded down it would probably be about right.
The second issue is that, in my experience, a NP cammed sail needs the correct mast to perform how intended. Your sail looks like about a 2012 model and your mast looks about early 2000's vintage approx. This will be a big factor contributing to your problem. If I were you I would invest in a late model mast with as much carbon content as you can afford.
The third issue is that the only NP sail that I have owned that rigs nicely at the recommended luff length is a 2017 V8 I bought recently when rigged on 2018 95% mast I bought recently. I was actually shocked that it looked spot on when I downhauled it to the recommended luff length and proved as much when out on the water. Prior to that, my experience is you need anything from 2-5 cm more dowhnhaul, maybe more, than recommended for the sail to perform well. IMO, the photos don't show enough slack on the leech high on the sail, down to between the second and third which means it needs more downhaul. You're better off having too much downhaul than too little in powered up conditions. You will know if you have way too much, the cams won't rotate nicely.
There are other factors you need to consider to have the sail feel comfortable. The amount of out haul, boom height and harness line position will impact on the comfort of the sail.
Get yourself a down haul winch, will be best money you ever spent.
Good luck, hope this helps, don't give up on the H2, a bloody nice sail. Don't be afraid to make minor adjustments to dowhnhaul, out haul, boom height and harness line position until you get it right for the conditions you're sailing in on a given day. Shout yourself a new mast for Xmas, this will make the biggest difference for a start