I dislike AP based solutions to problems, because they're not really solutions. There are already enough ways to milk AP's out of the system to significantly reduce the AP crunch.
My main problem is the extreme variability, possibly the most extreme I've ever seen in a wargame. Units suddenly performing 4 or 5 times better than before can be really unbalancing in the sense that single attacks can be game changers. My opponent made some of those, and I'm still feeling the effects.
Axis CV's can also become higher when modified, but that mostly happens when the enemy they're attacking is routed , but due to the lack of a direct link between the CV or the odds and casualties for a certain result (scouted/held/retreat/rout), it doesn't actually cause more casualties than another attack causing the same result.
The main thing I see in battles is that, if the Axis get increased CV's, the Soviets get some too. In my game with notenome, I've had numerous attacks being held solely because, even if my CV was increased or even doubled, the Soviet CV was tripled or quadrupled, leading to a loss.
From my perspective, I also disagree with the statements that the Axis have less room for improvement due to having better units, because as I understand leader modifications, it doesn't make sense. The Axis have better divisions, with more morale and experience, which is why they have better CV's. As far as I know, modifications don't modify any of that, they're just clean modifiers of a CV value. I've asked a number of times on the tester forum, but have thus far not received a specific answer as to what causes the increased variability for the Soviets.
When modified CV was first explained to me, Pavel (a programmer) insisted that everything theoretically applied to both sides. Afterwards, he said that the Soviets have more variable results. He suffered from a case of the flu, lack of time and he might very well be tired of discussing things with me, so I still have no idea how the Soviets get a greater variability if the modifiers are multipliers or dividers (which most of them are, as explained by Pavel). If 2x2 is 4 for the Soviets, why isn't 2x2=4 for the Germans, so to speak.
From the perspective of primarily Soviet players/from Flavio's perspective, it can be difficult to understand the problem unless you take detailed looks at combat results and see exactly how you're losing/winning battles. As I probably have more experience with the Axis than Flavio at this point, this is one of the areas where we don't share the same opinion.
WitE Alpha tester
Panzer Corps Beta tester
Unity of Command scenario designer