after testing the new Ostruppen with their lmgs and without at various distances and vet, vs un-upgraded riflemen and upgraded riflemen, the lmg seems kinda weak. at best the lmg brings the Ostruppen to slightly above par with unupgraded riflemen but only barely, basicly makes them the same. Once you add in weapon upgrades riflemen win hands down every engagement.
The penalty seems too much. By the time you can get lmgs you'll be facing vetted and most likely upgraded brit and usf infantry. The bonus damage the lmg gives isn't high enough where it makes it that much better than before. It is better than nothing but it doesn't really solve any of Ostruppen's problems, particularly when you add in the fact that they only stand any chance while in cover and that still doesn't cut it.
I would remove from the lmg the -50% penalty.
Its true as to what he says in terms of when they get their upgrade, you'll most likely ve facing uograded and vetted infantry.
The penalty may be high, but keep in mind they shouldnt replace mainline infantry.
If anything the upgrade should be something like 45 munitions and possibly unlocked at battle phase 2 due to serverity of the penalty.
I personally wouldn't advise strengthing the gun though since this can be easily abusable.