[MC5C]

In my view a magnetic pickup will make it sound like an electric guitar. If you happen to like the sound of an electric guitar, then you can experiment with a magnetic pickup floating off a pickguard, which is a fairly inobtrusive modification. Placement of the pickup makes a great deal of difference. If I was to try to get a guitar to sound like an acoustic, I would try a single coil pickup quite near the bridge - maybe 2/3 of the way down. A Fender Jazzmaster pickup would be what I would try - single coil, clean, and thin enough to easily fit under the strings. Other than that, if you like the un-amplified sound of the L7 then a lot of people just use a microphone, often a clip on mic that sits near the strings and over an F-hole.

Brian