The problem is that the range at which the DPS curves diverge is too close. So if you encounter an enemy Volksgrenadier in some cover, you cannot fight on long range since Volks will be more cost efficient. So you need to close in which is very risky since loosing a model while closing in will likely mean the loss of the complete fight.
The early Gren/Con-balance had a similar thing - Cons had to close in. But Cons are dirt cheap to reinforce, and they could take a model loss and still trade efficiently on close range. Also they cost the same, so no one got a real map presence advantage. These were the most interesting matchups in the game.
But Riflemen are not cheap to reinforce, Volks have an extremly potent Sturmpioneer at their side to help in early game and until USF getsthe officer out, they lack behind in map presence.
I really don't get your second point. It makes no sense. You can spam sandbags while capping a point from early to late game. So your infantry is always close to green cover. USF has literally no non-doc options to create green cover. Of course open field encounters happen, still most fights and especially the important ones are fought from cover. Taking away sandbags from Volks would go a long way to bring them back to normal cost efficiency.
If you want to look at another comparable unit, Rifles do less damage than Penal models at every range above 9(where cover works) but cost 1 mp more for 3% better RA. Even with BAR upgrades and at vet 3 Rifles do less dps than a penal squad without an upgrade until they are at ~5 range, despite the 120 muni investment of bars. This is Similar to their comparison with grens who also do more damage per man until they are at range 10 where rifles to the exact same damage as 1 gren, who has .9 RA to rifles .97 at vet 0.
Rifles seem to be decent at every range except super cqb compared to other units like grens and penals, which doesn't help to trade cost effectively. Man for man or cost for cost they trade worse as a result of the dps curve and upgrades that are not as cost effective. It seems like rifles are a bigger issue than volks. They can win the fights but seem less efficient than other similar units, who can be more effective at normal cover to cover engagement ranges.
Edit: Holy fk: rifles go from doing
39 DPS at range 10 to 64 damage at range 0 vet 3 full upgrades. Their power spike is insane when face hugging, Penals only go from like 41 to 45 dps. That's kinda useless most of the time though, Shocks don't even do any extra damage closer than 10 range b/c yoruw hole squad never gets that close.