Yes they are supposed to be an infiltration unit for the Ostheer who should be able to camouflage, place demolitions, and take points quickly especially with their "annektion" ability which automatically makes an enemy territory point neutral or a neutral point yours for a cost of munitions.
At the moment I think there is a bug in which the demolitions and camouflage ability overlap each other. You are still able to activate camouflage with hotkeys (c). The camoflauge ability should work like snipers, stormtroopers, and partisans. They also have sniper concealing smoke, so they can get out of situations quickly and invisibly.