I take it you use the MGs to hold fuel? Do you not have issues with Rifles forcing a retreat on your MGs with smoke or just flanking with numbers? That's the issue I always run into at least.
Interesting use of PGs though, I do like PG Shreks. Do you find you need to leave out healing bunker to get Shreks?
Hmm. Guess I'll try this too. Always thought its too risky cause of risk of losing an mg early on
Fuel is important, I do cover it with MGs (at least a portion of the point).
I keep MGs in buildings, and yes, Rifle smoke grenades are a huge hassle. That's why MGs need to be close enough to support each other (move a bit, reposition). So when you get smoked, you don't retreat the MG42, you just move it a little backward.
If you have the time, you can barb wire around your MG42 positions so that it's hard to rush at it/ catch it out of position.
Yes, the problem with this is very weak early game, and losing an MG is always bad. That's why I try to hop from building to building; this way, if I should lose an MG, the USF player can't turn it against me.
Medic Bunker is critical, as PGs are not damage soakers. Just avoid laying mines (even tellers) and avoid PG grenades until you get a Shrek.
EDIT:
Replay. No smoke, but quite some aggressive cut-off action.