I think the idea of a bigger/cheaper conscript squad is much more unique and thematically fitting than weapon upgrades. It also makes merge better. Overall, I love the concept (and it's reminiscent of something I've posted before!)
The cover bonus might be too much, though. Halve it, maybe? And is it too good with Hit the Dirt?
I'm pretty sure that the sergeant model has some issues. Winter version is broken, I think? Also lacks LoDs. I tried using it in a mod and it wasn't great. Guard with no cape is nice, though.
I was always amused by the bigger/cheaper thematically suited. What is themed here? The number of soldiers, weapons (only the first year the recruits received more SVT-40, then the production of SVT was reduced to produce a cheaper and faster Mosin) and equipment in the pre-war division and in the mobilized squad should be the same. All this is a conscript theme - it's just a justification of ridiculous changes, instead of the normal direct buff.
All army of the Second World War were a conscript army, just for some reason the USSR has ridiculous concept: instead of historical strelki (rifle squad) - conscripts, the second main infantry (unnecessary) at the start of the game - penal troops, which were 1% of the entire army.