So in your opinion 221 is better than M20?
I love using 221 vs Brits or USF. It has enough damage to bleed a squad enough for the infantry to be easily forced home in the next engagement. It also comes very early and I prefer the steady damage output of 221 over the bursty one of M20. Both vehicles have great utility. I don't think the 5 extra range of M20 is that good if you take a look at the long range DPS. Mobility of early game AI vehicles can be used to great effect attacking squads that have no snare at point blank range sending them home quickly, this is why I'd rather have higher damage than the 5 extra MG range. WC51 also is a better choice than M20 if you want to bleed enemy infantry, not only because of even higher range, but due to better DPS too.
It is a great feature of M20 to have a crew that can repair it, but playing as OKW with 221/223 and going mechanized doesn't feel too different (mechanized for Puma + HEAT). You don't want neither M20 nor 221/223 to be snared and the other damage can be repaired by crew or mechanized repair bots.
LT also appears to be a less appealing teching choice in 2v2+ due to ATG, Pak Howie and AAHT being locked behind CPT and if you plan to go both officers you are so full of infantry that there is no room for doctrinal inf and both officers don't have access to snare, so I prefer to go only 1 officer and it's more appealing to go CPT for me.
Going back to your question, I prefer using 221 vs allies than M20 vs axis.