Penal COMPANIES is what you speak of.
Penal battalions were actually well equipped, just given tasks they weren't expected to come back from in one piece if at all.
Remember the movie The Dirty Dozen? This is kind of shit penal BATTALION would do.
When I hear of Penals, I think about the "Burnt by the Sun"-movie trilogy or the books written by Sven Hassel. I thought that the difference between the Penal Company and the Penal Battalion was only the size.
The penals did of course very different tasks, and Relic could make some changes, so that the players use the unit. They could just make it to an unit that is different from the other Sovjet infantry units. Just add one non-doctrinal weapon (for example mid/long-range weapon) that they could buy for munitions.
Imo if the Soviet army is to have a cannon fodder unit, that unit should be to cheap buy and to reinforce and should have the name "Penal battalion" and not "conscripts".
"Conscript" is a good name for a mainline infantry and Penal battalion a better name for a cannon fodder unit both thematically and historically.
I agree that the conscripts are a good name for mainline infantry, because countries who had conscription had it in that way. For example Finland and Sweden did have it so during WW2 and during Cold War. For example Sweden could mobilize 850k soldiers in the 1980s if they needed to do so. When I did my military service in Finland, I was also a conscript.
So my opinion is that the Conscrips should stay in tier 0 and only make some changes to Penals, for example give them one non-doctrinal weapon.