No one wants MG teams to be that powerful. What we do want is MG's to do their ONE JOB effectively.
Right now you can put an MG into green cover and 5 squads of obers / riflemen with BAR's can simply walk into its cone of fire and kill it without even getting suppressed before it dies.
What is the point of suppression if it can be broken by just attack moving your units forward without even trying to flank / use tactics?
Why is your MG without support? Do you expect 240 MP to stop (if 5 Obers) 2000 MP of infantry by itself? I sure as hell don't.
Also, yes it will suppress even Obers rushing at it. No way it won't. It will die shortly if alone, but it will. Then again that's like asking a lone AT gun to do anything but fire 1 shot at an incoming rush of 5 Panzer 4s. If your MGs don't help you deal with blobs, you are using them wrong.
And yes, if the enemy has overwhelming numbers and firepower, not having to use tactics against a lone unit is normal in any RTS game. What, do you expect that the game will make his units explode if he bunches too many of them together? There are numerous blob counters in this game. It's up to you to use them. One T-34 will counter any number of Obers. 1 microed Ostwind will counter any number of rifles, for a start. If they are suppressed, it becomes even easier.