I don't we really need to bring either of Kaif or Laxman into the team, do we? If it's a good pitch, we have 5 batsmen, Dhoni and Pathan to do the job. If it is a bad pitch, it is very unlikely that Kaif or Laxman will add enough to make a difference. Anyways, whatever the team, I hope India go into this game aggressively, and looking for a 2-0 series win. Only bad things will happen if we try to relax on our laurels and pick up a draw and the #2 spot.
As for England's clutching of the #2 spot, most of it came because of 2 easy series victories against West Indies. The South Africa team wasn't on top form then, though the achievement was notable. The victory against Australia holds credit anytime, though. However, when you balance out two away victories against West Indies and South Africa with two away losses (if it so turns out) against India and Pakistan, your ranking's bound to fall.
That said, if England draw this series, then they deserve the #2 spot because they have managed away victories all around the world (except Australia).