Ostgrenadiers would be completely broken, even for their cost. They'd be tougher than Vet3 grenadiers at Vet0, with more men in the squad, and oh, by the way, you can't counter them with a sniper. I admit that this faction concept was posted before I really knew what I was doing in regards to CoH stats; before I even had access to Corsix.
If you want to see at least some of the ideas in this concept in action, take a look at
Operation Avalanche: Fall of Italy mod, developed by myself.