Yup. If they decide that only the Axis should get a bonus, it's a 2 second tweak to a single file to give that bonus to other sides for your own gaming pleasure.
The best thing about Paradox games, customization to suit the individual player's tastes and preferences.
The problem with that is that unless you incorporate that to a major mod, it will affect the MP situation. There standards exist there, and thus the state of these features upon release cannot be merely shrugged off.
As for the amount of provinces, I fear that having an actual frontline will be much more difficult.. on the eastern front, at least. You need 'a lot' of divisions..