If anything, at the very least, Penal battalions should be given the Oorah! ability, if only to be able to run AWAY from their own satchel charges.
No. You're forgetting that they'd be able to Oorah up and throw a satchel as well which German soldiers wouldn't be able to get away from at all - you can just throw it slightly behind them since you're faster and they'll be caught in the explosion when retreating due to input delay and stupid pathfinding.
I don't really understand the in-game design of the penal battalion. In real life the most common use for shtrafbats was suicide missions which fits with the in-game unit's suicidal satchel charge throwing, no armor, and the flamethrower upgrade. But then Relic decides to also give them SVT-40s - essentially making them glass cannons - and a very high (initial) production cost, making them more effective as ranged elite infantry rather than suicide troops. These two design element types clash with one another and makes it very hard to find a scenario where all of the penal battalion's skills are useful.
Compare this unit design to that of Shock Troops: they have heavy armor, PPSh's, and two types of grenades, all of which can be used to great effect in any CQB situation.
Recall the old Rapid Conscription ability gave Penal Battalions instead of Conscripts. This leads me to believe that Relic did intend for Penals to be the suicide run-in-and-die troops (currently, that privilege is given to the regular conscript squad). What really confounds me is why they gave the Penals better weapons and higher cost to begin with.