Pretty nice, but I do think some changes could be made.
1. When Mario is underwater, he still makes audible noise. It would be better if he either didn't make any noise at all underwater or made bubbling noises similar to SMS. Also, regarding the underwater problem, water heals you. I'm not sure if this happens in the OG SM64, but since this is a mod that tweaks the 64 moveset to fit in SRB2, water healing could be removed. (Note that going into water at full health, losing energy, and coming out is not water healing. It is more like going in water while damaged and hopping out for max energy.)
2. The wall kick and dive are too OP. Tone down the dive to have a cap on the speed, but not too slow that it feels like Mario is sluggish. Additionally, the wall kick can be done on the same wall over and over, and it is way too fast. If the dive is toned down, the wall kick speed wouldn't be much of an issue.
3. The hearts are a bit OP for healing. An idea could be that they heal 2 energy and then disappear. Having them be infinite is a bit OP, considering ring monitors are pretty common.
4. A few quality of life features, such as a star replacing the goal and a few other Mario 64 style changes, along with a settings menu, could be nice.
Overall, I like this Mario mod better than the other one, and if these changes were made, it would be perfect.