If anything should be altered, it is the size of the squad. 4 man squads are way to fragile to get wiped on retreat. Same goes for Panzergrenadiers, get wiped on retreat way to often 
Don't retreat with last man on sliver of health
if both are increased to 5 men, dps should remain the same and pop cap for the panzergrenadiers should be upped by 1. Gren pop cap should remain the same.
If they became 5 man, DPS would have to drop down or cost would have to skyrocket.
But don't stress yourself over it, it will never happen.
If this is to much to be asked for, squad spacing should be altered asap. Same goes for allied squads, how many times I haven't had my OKW p4 vet 3 wipe entire squads with one shot, I just can't count it anymore.
This is the only issue, it always was, squad bunching since cover fix.
Relic can't fix it for months, random modders fixed it in a day.