Submarines pressure hulls are not tapered like this. You need a hemisphere capping each end of a cylinder. You also cannot easily use the space outside the pressure hull because they contain important things like sonar, ballast tanks, etc.
I am aware that the ends of the pressure hull are capped cylindrically -- as I wrote, it is intended to be a rather simple diagram done in like three minutes, to visualize the ability to change the pressure hull volume without actually increasing the maximal pressure hull diameter by extending the portion of the pressure hull length that has the existing maximal pressure hull diameter.
I'm also aware that the changes between the pressure hull sections are not actual 90 degrees as depicted but more gradual.
If we look at a depiction of a Soryu for example:
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If I was to spend five minutes instead of three minutes on paint, it might look something more like this, below.
As I said, the details aren't as important as demonstrating the principle of increasing the volume inside the pressure hull (green line) without increasing the maximal pressure hull diameter, and instead just lengthening the proportion of the pressure hull which has the existing maximal pressure hull diameter.
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As for the space between the pressure hull and the outer hull -- I agree, that space is important for various systems including sonar etc. However as the 09III family is a double hull submarine by design, they should have reserve buoyancy and volume to make up for it, particularly in context of miniaturization of key components, and accepting a lower (but still sufficient) reserve buoyancy.