That is a nice and unique way to solve the problem.
While creating a whole bunch of new ones in the process as osttruppen are only infantry cons are able to fight past 3rd minute, grens become much better at flanking, snipers are becoming even weaker indirectly, you're paying barely anything for HUGE survivability increase, tommies are getting hardcountered at short range by much cheaper squad, grenspam becomes the only way for ost again with support weapons and other infantry types being irrelevant now and the only disadvantage of the faction-infantry that depends on support teams and supporting units for staying power is gone-this is only a few I can think right away, likely many more balance implications with that.