While i agree on the topic i still think the damage tables from small arms are more immersion breaking than the physics.
Indeed. Small arms fire hardly seems to do anything outside of the first few engagements. After that, infantry battles are all about who throws a better grenade.
I find it a bit strange that explosive weapons seem to do 'realistic' damage vs infantry (i.e. bundle grenades wiping out 5 guards etc, 120mm mortars 1 shotting grenadier squads), while all other forms of damage in this game are toned down (i.e. a panther needing 3-4 penetrating shots to kill a T34/76). It really removes the need for careful infantry positioning such as getting into heavy cover as you will just get stormed and 'naded.