The topic of this thread is Penal, lets move away from conscripts and maxim. This unit could easily receive minor buffs if when penal power level is decrease Soviet prove to be weak.
Another issue with Penal are the very strong offensive vet bonuses their receive combined with their very strong base stats.
Oh please, don't use "their vet is stronk" argument.
It didn't worked on cons, it won't work on penals for exact same reason.
And that reason is:
Units with weapon upgrades scale better then units without it.
Yes, their vet is strong, but DPS increase they get is still much lower then units with access to upgrades(which is literally any other rifle unit in game).
In fact, their vet is like that SPECIFICALLY so they are able to scale without weapon upgrade and we still have axis equivalent who got equally strong vet, is cheaper out of the gate and gets weapon upgrade while also being 6 man squad and having much more utility.