I think the problem is also that WFA armies simply are too powerful.
Grenadier where supposed to be the DPS dealer and now they are being outgunned from more resilient infantry.
I agree that the high DPS of WFA infantry is a fundamental part of the problem - double equipped infantrz has so much DPS that they can even mow down MG 42 crews faster then they can suppress them.
At the very least, WFA DPS curves could be looked at; the long range DPS in particular, either by lowering LR accuracy or adjusting cool down/burst length, accuracy against targets in cover etc. It is particularly true when it comes to Rifleman, they are simply far to versatile DPS wise. They are five men squads came out with five fast firing semi autos that are just as good as long range as individual Kar98s, far superior on the move when positioning and even better the closer you will get. Its quite absurd that they only gain even more superior long DPS, can fire on the move. The 2nd weapon slot could be tied to obtaining a high level veterancy first, for example.
Their DPS curve is simply to versatile and should be at a disadvantage at least at some ranges - this worked beutifully in Coh1 btw where even properly positioned Volks could easily beat otherwise superior riflemen, for example in a long range both in cover firefights. Infantry units of not vastly dissimilar cost should be able to gain advantage over by positioning (cover, engagement range) rather than just brute forcing their way through inferior opponents.
But in COH2 they just have all the tools (fast firing semi autos and BARs that fire on the move) to be a superior maneuvering squad AND a superior slugfest squad.
The problem with 5th men grenadier upgrade is the LMG and G42 upgrade. At the moment you get it they would become best line infantry in game.
Nope, you would not as the number crunching doesn't support this much. The LMG 42 is only able to fire when static and even LMG upgraded Granadier squads are not that hot in overall DPS. They get a good LMG but their base DPS with their four bolt action rifles is lower than the DPS of Allied squads. There shouldn't be a 5th guy with Kar98k of course, because that would be OP (... bolster for the Brits)?However, if the 5th men in the Grenadier squad is in a rather passive role, it can be fairly balanced only to spread incoming fire better along 5 models rather than 4, and provide a bit of . Hence my suggestion that the 5th guy would handed only an MP 40, which doesn't add much DPS at most ranges over 8, which is basically point blank - however it would helps a bit against bum rushes and would open an interesting counterplay option against Tommies.
Grenadiers MUST be versatile as they face very varied threats ranging from Tommies, Penals, Cons, not to mention Doctrinal infantry like Guards, Rangers and Shocks or Commandoes. Wehr has only two kind of mainline infantry and doesn't have elites or early semi-elites like OKW. . OTOH Allied players only face Volks or Grens first, and they are pretty much the same long range bolt action weapons profile (with 5 Volks Kar98 roughly equalling 4 Gren Kar98s, but on an overall tougher squad). They must have answers for each a reasonable outcome IF properly positioned. Panzergrens are a different, rather specialized breed that cannot (as they come at a time you already have several Grens on the field) and should not fully replace or make obsolate Grenadiers and are primary meant as short-medium range infantry. Grens must be the generalist option for the Wehr player that can deal reasonably - not necessarily win against - with all kinds of threats.