Its not good for two reasons:
1. Unless the events are fixed or seriously modified, you have to go to war on schedule as Prussia to unify Germany. Its extremely difficult, requiring nearly perfect play, to defeat both France and Austria in that period. In my three tries so far, I've only done it once, and that required holding Paris desparately while France was destroying my armies in the Rhineland.
2. Not simulating the weakness of France and Austria mean that a Prussian AI player is not likely to unify Germany. With Austria and France all out building military, their higher manpowers mean they can swamp the Prussians (who only have 14 million people in the 1836 scenario).
3. The uber-Austria makes unifying Italy impossible for the AI. I've never seen it attempted. Twice Two Sicilies gave up immediately, making a White Peace with the Papal States and once Sardina did nothing before ceding territory to Austria.
There are some balance issues out there. The simple fact is the game needs to be "easier" to make it more historical.