Penals have excellent DPS.
"cue next guy again making a defensive post"
Says the guy making yet another defensive post?
Oh wait, that isn't Nullist speaking, it's his tape recorder he uses to repeat the same stupid things over and over when he can't think of anything else to say.
My point still stands, and you're just repeating yourself because you can't refute the nature of the LMG. It kills individual men very quickly, dropping the squad overall.
This was actually an issue in DoW2 as well, with the SM Tactical Squad vs Chaos Space Marine with tzeentch upgrade match up. Overall, the SM Tacticals had less DPS, however their Plasma gun would apply such large damage to a single man that it would kill someone quickly, causing a massive drop in DPS from the Chaos squad.
Infantry in CoH2 aren't space marines, they drop even more quickly.
As a side note, I still argue that Penals shouldn't be getting SVTs, and were basically thrown in as an out of place stopgap. Literally everything about them says they are close assaulting units. You cannot blame anyone for trying to use them that way, regardless of what the stats say. Heck, if you didn't zoom in all the way with them, no one would even know they had SVTs until they checked the stats.
The design of Penal Troops is broken. I say, remove the unit, and replace it with a unit named Veteran Strelkovy, maybe even Siberian Veterans**, with SVTs, replace the abilities with the old beta vet conscript ability to inspire troops around them. Make Penals something else, maybe a B2 (building 2 unit) or a commander unit that's geared towards what the unit is presented.
** Historical note, Germany was quite surprised after their initial invasion into Russia when veteran troops from Siberia, fresh from their battles against Japan, were transferred west to fight Germans. This influx of experienced fighters was a shock for them.