You are missing the time factor. Even if osttruppen become identical to conscript but available around minute 20 they would hardy had much of an impact.
Osttruppen are good at stealing weapon, if you want to man weapon pioneer are far better.
Giving LMG to 6 men squads is bad option because of the the DPS drop does not follow the entity lost, imo it should be removed.
The idea is to remove the LMG upgrade not keep it, the upgrade would just to remove to cover mechanism, less firepower more utility.
I honestly feel like ostruppen are just supposed to be line infantry, which IMO they very much are right now, not some sort of assault squad. Panzergrenadiers exist for that. I see what you're saying about lmgs but there's already like 2 other 6 man lmg squads and 2 5 man lmg squads (sections with bolster and 1919s on rifles) and IMO it's not a massive problem such that it warrants removing in any capacity, especially because there's kind of a lot of larger lmg squads anyway.