Yes and no - hopefully the experience mechanic will make it hard for the French/UK to build German-style armoured divisions pre-Battle of France, and while the allied airforces weren't small, from memory combined they were still smaller than the Luftwaffe where it counted (I think - but am not entirely sure - that the UK had more strategic bombers, but not fighters or ground support aircraft, and the French airforce was woefully under-sized). If the German advantage in air power is partly represented in CAS doctrine being ahead of its time, which should set up in 1936 so that if the French player wants an airforce with close-air support as good as the Germans, it has to sacrifice something else.
The other problem the French player should have is that the Maginot line is already largely built and sucking up large propotions of the defence budget - make France pay for its forts on the border, and suddenly it's got a lot less capacity to turn its military around.
That said, we don't want to guarantee a historical fall of France if a human player is in place - if there are human players with France in an MP game, then house rules can cover things (although it would be good to make it as difficult as it was historically for a human player to succeed with France, entrenched old guard, divisions in the military, limited political support for the airforce and all that). The issue is making sure that the game is set up so that AI France generally falls to AI Germany, or to a human Germany played reasonably competently.
According to Foreign Affairs; France had 320000 men already under arms in 1935 and 210000 overseas. With that army already constructed it would also have to pay for those forces already existing from game start in addition to the maginot line fortifications. There would also need to be some kind of penalty or offsetting disadvantage for shipping all the overseas men to metropolitan France in preparation for the upcoming war, or disbanding a bunch of them and reconstructing completely different types of troops in the face of German rearmament.
Even with this and the wikipedia figures that France is able to put up in time for the historical war, paying for this stuff the whole time is not going to strangle France and ensure German victory.