ORIGINAL: map66
Part of the problem is that the game doesn't model that the Germans were not as well prepared in the south as they were in the center and the north, especially logistically, due to the diversions necessary for the Balkan campaign. In game terms, obviously, one rail head can be used be used to support an unlimited number of panzers--- something that sounds like it will be modeled better in WiTW, but for now allows a rather a-historical diversion of forces south and the resulting Lvov pocket.
One possible solution would be to have the turn 1 surprise rules not be in effect south of certain line--- i.e. German units that operate south of there pay normal movement and attack costs. This might do a decent job of modelling the relative German un-preparedness in the south and the relatively higher performance of the Soviet units in that area. Obviously, any units from Army Group Center moved south of the line would start to pay the higher movement costs, and my suspicion is that this might eliminate the Lvov pocket as an option, or make its implementation much more of a trade off then it is now.
Sounds like a good idea! Worth exploring.