The Grenadier Squad has long been the gold standard of CoH2 Infantry and if there are issues with them being ineffective, the issue lies somewhere else. USF and UKF have introduced the ability to double-upgrade your Infantry and I believe this is where the problem lies.
Though it's true they have to invest more to get more power, you literally cannot invest more to counter it because you are limited by unit design, you could have 200 munitions and you wouldn't be able to get a second MG 42 on your Grenadiers or more StG's on your Volksgrenadiers; they are simply outclassed by design.
I believe UKF is a worse offender than USF, the BAR isn't overly special imo. For 60 (50?) munitions it is worse than a single Panzergrenadier StG, and Riflemen were designed to be inherently more powerful than other mainlines. Infantry Sections are more of an issue though, double Bren means they can stack long-range firepower which means A+move or Cover play is much stronger. They can reach 3/4 the DPS of Obersoldaten or Vet 3 Grenadiers for a mainline infantry squad. This is also often combined with free unlimited field healing.
The UKF are such a strange faction, a pendulum swinging between overpowered and underpowered. I believe the cheesebility of certain units is why they're so hard to balance. Being allowed to stack so much firepower on a 5 man mainline infantry squad is certainly a problem. Most Armies require you to use an elite unit or doctrine unit for this, like Obersoldaten or Guards.
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. This change might shift ppl even further away from Mech as a viable tech. Does Mech HQ gets the Infantry Weapon Upgrades upgrade by default?