Why are people complaining about the reduction of political parties? Surely three parties will make it easier to bring other countries into the conflict by diplomatic relations (if that still applies).
And three parties will work for... let's see ... no nation?
I'm not sure we need the same number of parties, but for Germany, you'd want the Nazis, the army-autocrats/monarchists, a conservative party, a liberal party, a socialdemocratic party, a leftwing radical party and a communist party. How else would you depict any government change? The potential and attempted coups from the army would not have been democratic and ABSOLUTELY not communist, so you need a party to account for that. You need a decent range of parties if it turns democratic, and you need a party to represent the few Spartacists that had survived, and of course a communist party to greet the Red Army when they come rolling.
USA would have two major parties, and a smattering of smaller ones. They'd need at least the two regular, and a party or two on each wing.
Denmark would need six parties at least: The Nazis, the Conservative, the Liberal, the Social-Liberal, the Social-Democratic and the Communist parties.
Even USSR could need more than three: Two or three communist parties: One Stalinist, one Trotskyist, one leftwing radical that could perhaps be ignored, one social-democrat, one ...
You get the gist.
No, I wouldn't buy it if they had cut the number of parties down to 3 for each nation. There are several nations that would no longer be able to make sense or you'd have anti-historical parties like "This party represents all right-wing authoritarian parties", "This party represents everyone from conservative to social-democratic" and "This party represents all left-wing revolutionary parties", something that is frankly laughably stupid - which wouldn't make sense either, but at least you would admit it.
What would make this plan even worse, however, is that they already have the parties from earlier HoI games, even if, for e.g. absolute monarchies or dictatorships that had forbidden opposition parties, the names themselves were anachronistic or names of groups, not parties.
So removing the parties would make every nation very, very silly, and it would be a weird move for Paradox who already has the setup from earlier.
What I expect this is, is they haven't yet scripted the all parties so that's why we don't see them.
And really, who'd think the Nazi party had ~75% of the popular support in '36?