Question remains is "why use KCH at all?". Panzergrenadiers might not have the same AI firepower but they can use panzerschrecks (whereas KCHs don't have any AT weapons, at least Fallschirmjaegers have Panzerfaust). If anything, KCH having faust is most logical given their high cost, small squad size, inability to pick up weapons and the risk-reward of a sturdy AI unit running to up tanks for a potential critical. Without it though you shoehorn them into the Ostheer equivalent of Obersoldaten- useful if you ever float on manpower.
You've clearly done your homework on the stats, but what about the concept and purpose of the unit? High cost and even higher CP to unlock makes them a very premium unit that by the time they are out, at the same time render all AI squads obsolete yet pointless because the enemy likely has vehicles out ready for a 420 manpower squadwipe.
For perspective, all 3-man squads in CoH2 share 2-3 characteristics:
-not very useful as combat troops, and focus on utility or support roles
-early CP unlock
-because of the two above, they are usually cheap
Perhaps what KCH needs to be is a more support-oriented unit? Or even a sort of upgrade similar to British infantry section's upgrades, whereas rather than discrete unit, it's a powerful modifier that requires you to upgrade individual existing units?
As for the rest of the commander abilities (which seem peripheral to the KCH concept given the relative lack of details), Propaganda War is too similar to Fear Prop Artillery. Perhaps modify it by, for example, making it similar to Assault Artillery where you can only target enemy sectors but instead of conventional shells with smoke, it's a large number of insta-suppression shells that don't cause retreat, but still offer great assistance to an attacking force. For balance (particualry against UKF), this includes all units, not merely infantry; vehicles and emplacements/ garrisoned units are "stunned", allowing your forces to approach to attack directly or flank.
Some other ideas worth thinking with a "Terror" theme I'm spitballing:
-Stuka incendiary bombs from Luftwaffe Supply Doctrine; would be similar to COH1's Firestorm barrage
-Incendiary modes for units like panzerwerfer/ mortars (taken from the defunct Urban Support Doctrine)
-incendiary grenades from OKW
-incendiary mines
-Zeal from CoH1's Terror Doctrine- at least for a CH unit, where their small unit size makes them hardier when they do lose units, that would surely make up for inability to pick up weapons or zero AT
To keep the KCH from being completely self-reliant, I removed the panzerfaust, which would force combined arms in order for them to exploit their main strength. To also make sure that they aren't instantly wiped, I lowered their taken accuracy/suppression, and increased the model health to 90, otherwise they would be easily focused on, and destroyed. With their AI capacity, they should be able to shred through unsupported infantry. The KCH would be useful to spearhead an infantry assault, due to their low received accuracy/suppression, and their main ability which breaks suppression ('Assault').
The Propaganda War is meant as more of a defensive ability instead of an offensive ability. It's able to send the enemy running back to their base, and can be combined with artillery targeted into the enemy base to instantly destroy blobs of infantry.
The Terror doctrine that I depict gameplay-wise is more of a assault-support (ironically better than the 'Assault Support' Doctrine itself) kind of doctrine, where It gives you the required abilities to breakthrough heavily defended positions, and supporting you forces as you move in. The Terror aspect of the doctrine isn't the 'pure essence' of the doctrine, but instead goes along the lining of all the abilities/units. The description explains it better in my opinion.