Pioneer are SMG troops that can not attack past initial fighting and their best combat use is defending HMG from flanks, while having to fulfill a number of other roles including building base building.
From my experience it is rather rare to see a vet 3 pioneer.
Pioneers can decently vet up if they have a flame thrower, however usually only the ones that have been built early.
But my point was not about about pioneer veterancy. My point is that pioneers compare decently against enemy units at the start of the game. This dynamic does not change until the enemy units either get upgrades or combat bonusses from veterancy. And since vet1 is usually reserved for utility, vet2 is the first point at which the actual combat performance of pioneer vs XYZ is changed and pioneers become less effective.
Squads do not reach vet2 nor weapon upgrades within 2 minutes, that's why I said your point that they are "not useful in combat past minute 1" is an exaggeration. Pioneers are usable in combat for the first 5-10 minutes depending on various factors. Only afterwards they fall off.