Yes it is a broken mechanic. From the German decision to commit forces to Spain, we could see that they were able to send 2 divisions based on the number of divisions they had operational. This means that if a nation spams regiment/brigade sized units, they can then send a greater number of full sized divisions to intervene. Germany had the option of sending 2 divisions of a starting total of 30, so 1 for every 15 units. If instead of 30 divisions they had 5 divisions and 75 brigades, they would be able to send 5 units, meaning they could send the divisions and keep the brigades at home. This would increase the size of their intervention by 150% despite having the same numbers of troops.
This is a non issue since it can be easily fixed during beta by giving a limit of battalions and not divsions.
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