I'd like to add my voice to those that feel locking off divisional structures behind an "XP wall" feels needlessly contrived and this "gratuitous gameyness" stands in stark! contrast to the refreshing realism of the overall template system.
Really, the system itself, XP aside, looks great! Using Battalions as the smallest "unit of customization" of the "Divisional Core" allows Paradox sufficient granularity to reflect and properly balance the units of different nations. Additionally, there seem to be at least 5 support slots allowing for the historical "maximum bling" of Divisional Recon,Engineer, Artillery, Anti-Tank and Anti-Air assets.
It looks robust, authentic and heck of a lot of fun to tinker with. I am being completely honest when I say that this screenshot makes go for into "throw money at the screen" mode.
... except for the XP system. Scrap it. Seriously.
I mean, I can understand the desire to, in the name of authenticity, "cordon off" some choices.
A well-known example being pre-war France having its tanks dispersed rather than concentrated. Translated to HOI 4's language this would mean most of France's tanks would be attached as "Divisional Support" alongside Artillery or Recon in the section to the left.
But the thing is, the reasoning behind that decision was doctrinal. It was a doctrinal choice that had nothing to do with battle experience or lack of thereof.
On the other hand, if we're talking about simply the size of divisions, that's really a function of available resources. Historically, the decisions behind divisions changing their sizes, either growing in size or the opposite, were due to equipment/manpower considerations more closely aligned with the countries' level of mobilization/exhaustion of the means of war than anything else.
I strenuously advise Paradox against including the presented XP system. Instead, the freedom (within plausible limits) to experiment with different divisional organizations should be a highlight feature of the game, not the restriction of thereof.