Cannot replace fuel points, costing MP and providing less gas, as well as being very easily destructible late game. By your own admission you had total fuel dominance all game and inflicted heavy losses on the opposition (5 Kat is like 1500MP 500F!). Unless it was a 3v3/4v4, there's no way you should have lost to those odds if you hadn't thrown the game away.
The Katyusha is OP, yes. It does not, however, mean any Axis loss is due to them. They do not win games if they are being destroyed in such numbers. Unless, again, your opponents outplayed you and came back.
I play a good amount of Ostheer in 2v2. I owe some losses to Katyushas, yes. I also managed to beat them. It's tough, but very doable. They are very powerful, but they sure as hell aren't an excuse for every loss against Soviets. Especially in 1v1.
Replay. See for yourself:
Basically it works like this: whenever there is an advance going on you drop barrage on that area. Rocket hitting the squad results in a squad wipe. You got 16 of these in one barrage.
Game was 2v2 obviously.