I just let the AI play the first turn as Germany, just to see what it would do. While it certainly killed more rifle units in turn 1 than I did (1150 or so) there was no attempt at encirclement and I was able to pull out the bulk of my remaining forces including some good armor and almost my entire airforce. So yeah first turn kills need to be midigated by the need to entrap units later.
In my main game (where I am playing both sides just to get a feel for things) I am definitely behind the historical timetable and behind what I remember being able to achieve in older games, such as Grigsby's Second Front and War in Russia, and even Avalon Hill's The Russian Campaign.
edited to say Thank You to seille for his prompt response.
edit x2: In my next try:
Rifle Kills: 927
Fighter Kills: 43
Dive Bomber Kills: 43
Light Tank Kills: 23
Artillery Kills: 35
Infantry and AT guns Kills (combined): 55
Mortar Kills: 71
Plus sundry Horses, Trucks and Flak.
In addition 6 full Russian Armies pocketed completely and another 6+ with only a one hex not RR track escape route that their low readiness should prevent them from taking advantage of.
A significant improvement over my first 2 attempts.