The fact that the word "Medium" is written right above Light 1 and Light 2 doesn't help the average viewer in reaching that conclusion.
But I'm glad the tanks have their correct designation.
EDIT : 7716 hours in paint :
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This is the same tech tree, except clearer.
I believe the reason it is the way it is now is 2 fold:
1) I think that changing a template from having a Light Tank to medium tank will cost XP. I actually agree that this should happen, as it prevents other abuses if you can simply swap out any battalion for any battalion. You will most likely have 2+ tank battalions in your tank divisions, and I would assume 4, giving this a cost of 4X.
2) If it is expensive to change templates, and given the cost of changing factories, this leads to a point where it becomes very very smart to simply produce minimal amounts of Light tanks, as the change to medium will be very high. This cost will be mostly done by Germany only.
This basically leads to a similar version of min-maxing in HOI3, and it really takes away the importance of Panzer I and Panzer II tanks in the game.