Hard to say. What you say seems pretty logical, but then, a lot of stuff is logical with 500m hexes. Built up areas as shown on these maps, at this scale, might be fairly low, with a lot of two or three story buildings, given that most of the maps don't have major conurbations. Then again, maybe there are church steeples and stuff. It's kind of abstracted, so I could see either what you are suggesting, or the current system working, though I do wonder whether infantry is getting enough benefit from towns/cities.
If you want to see urban or town fighting, though not at this level of intensity, that involves tanks, ATGMs, etc., take a look at some of the videos on places like LiveLeak.org, from Syria. Tons of videos of man vs. tank engagements, and lots that show people fighting across built up areas. Admittedly, Syrian architecture tends towards flat roofed square buildings, but even where the buildings are probably higher than in Germany there seems to be plenty of long-range lines of fire. Not sure how relevant it is, but it does show the complexity of what they're trying to simulate here.
But yeah, I'm in favor of whatever tweaks are necessary to adjust the "feel" so it's right, but that might be different for everyone of course.