Only problem is how do you bring down M1 Garands and StG's to the level of Kar 98's without it being ridiculous?
Edit: Thinking about it, you could give the Volks StG the Sturmpioneer profile, which has a much harsher dropoff and would very likely put the StG as below Kar effectiveness past ~18 meters. Still don't see how you could nerf the M1 Garand so hard without making Riflemen worthless though.
The question always comes down to "should unupgraded, unvetted Riflemen beat unupgraded, unvetted Grenadiers at X range?", where the answer colors the rest of the balance debate (An expensive mainline infantry squad uncompetitive at range and faced with nondoctrinal elite infantry opponents, one of which is itself close-mid range geared, does not fare well overall.)
Then you throw BARs in, and the ability to double-purchase them, and everything gets a lot messier: 120 munitions of anti-infantry upgrades should be worth the cost, presumably, but then people complain about it handily beating the 60mu final iteration of axis mainlines (StG44 Volks, LMG-42 Grens) (again at X range).
Weapon racks were a mistake tbh. Have caused way more issues than interesting gameplay options (BARs inevitably go to Riflemen, and occasionally Pathfinders. Bazookas get dumped on REs and maybe Rangers...)
That aside, I really think RM are fine, probably where they should be atm. They struggle versus the vet1 + StG-44 power spike on VGs and then come out above them with veterancy and BARs added later on. They fare well versus unupgraded Grenadiers most of the time but the arrangement seems mostly fair to me against LMG-42s.
If the rifle Garand buff (+0.4DPS at range 10) was to be fully reverted I honestly think they'd struggle versus VG again. And I certainly wouldn't follow up with a nerf after that.