I've been playing the WM Osttruppen Doctrine a ton recently (fits really well into my previous T2-rush build) so I'd argue that Osttruppen are fine. I find them paltry infantry so I only go for 2 of them and have them babysit my MG42s.
I'd like to see the MG42 upgrade come at BP2. Currently there's quite a gap (perhaps 10 min) between the time US get their BARs/M1919s or Soviets get their elite infantry and when Osttruppen can get their MG42 to not get walked over.