I seem to recall that it is even more severe. If I remember correctly you get 5% of the manpower from non-cored provinces(and if they are simply occupied then you get even less of everything).HoI3 was basically history railroaded, so it doesn't surprise me about the lack of cores. We'll have to wait and see about HoI4, perhaps it does have more cores now, or simply not having a core isn't so severe as it was.
Also, the aim of HoI4 is in fact sandbox gameplay, so I wouldn't be surprised if more national focuses for minors will be patched in (like national ideas in EU4). I would very much like to do an fascist Hungary playthrough, among others.
To respond to the whole OP topic, I do not believe restoring Austria-Hungary would be plausible at all. Restoring Austrian Empire by force however… that does make more sense.
And creating a new Hungary-Croatia? Well, it is an interesting topic, mainly the question - would Croats let bad blood with Hungary go? Was the situation in Yugoslavia so bad? Quite hard to answer.
Edit: it is even more severe since conscription laws come into play as well. So you would have 0.05*level of conscription as manpower from those provinces. So even with scraping the barrel you would get 0.05*0.6= 0.03, so 3% of the population. But more realistically you would get 2% with service by requirement conscription law. In HoI3 you got 25% of the local manpower (local_manpower_modifier = -0.75) and conscription laws could potentially counteract this very well, with service by requirement got you global manpower +100%.
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