To be fair though, some of the better mods have taken care of many of these problems such as Brazil building a carrier fleet or LUX building armor divisions and yet have retained the event based system. For example if you load up Bulgaria with CORE2 you get a country with like 3 usable IC and such poor tech that your likely going to have to temper your ambitions to somewhat plausable pursuits. In vanilla, these type of issues are far more related to Paradox giving unrealistic starting assets to nations as well as shortened build times more then any specific AI philosophy.
Issues such as the political effect of Venezuela trading oil to Germany without US intervention are simply a limitation of the engine otherwise I am sure those kind of oddities would have been accounted for. I do believe the AI has preferred trading partners and such which many mods have altered to make these situations at least very costly.
I suppose part of the issue relates to how one perceives their role as a player. I've always thought of the player as more of a muse, soul, or anthropomorphized will of the nation rather then a chief executive. Thus the physical historical limitations of, for example, German Carrier doctrine should be imposed, but its OK that Goring provides the planes needed to commission the Graf Zepplin because you are the muse whispering in his ear.
All very true.
Most of the mods for HOI2 (CORE, TRP and whatnot) really nerf all the ridiculously high levels of IC for minor nations (5IC Yemen FTW!). However the thing that most people end up bitching about these mods is just how very little there is to do when playing a minor (What do you mean I can't conquer the world as Sweden!?). I can only imagine what would happen if Paradox started to make things historical and realistic akin to CORE2. It would render the "Play as any nation you want" totally useless and lead to a number of "Finnish army defeated the Russians in the winter war and I think that they should have five tech teams and 604589 IC to better represent this" - threads. The fact is, quite bluntly, that if you are going to have a game of realism where the world map is your playground, countries like Finland will be boring to play. And since most people want to play these nations for some odd reason, Paradox simply has to make them interesting and allow them to build fighter squadrons and tank divisions, no matter how unrealistic and ahistorical it may be. As such, even though sometimes I would like it to be, HOI3 will not be a historical simulation. There will be a number of modifications to make it more historical and more realistic, but the vanilla game will be anything but.
In a way a historical simulation would be quite nice to have, but considering how it could only be played by a handful of nations (US, UK, USSR, Japan, Germany and Italy) and how the ultimate realism of the game would render things to go pretty much historically, there would be quite little for the player to do. Especially if you consider that to attain absolute realism you wouldn't be leading your armies yourself, but rather army groups to whom you would give objectives and whatnot. The level of abstraction, combined with the consequences of your actions would make for quite a punishing and sadomasochistic experience. Then again at the same time if you did accomplish something in the game (Making Franco join the axis), it would be far more rewarding than HOI2/3 will ever be.
But on the subject of Paradox games, knowing how they are based on board games and whatnot, one simply has to accept the unrealism and game balancing aspects. In a way it makes sense if you assume that "will of the nation" role (Which would explain how you can change your government form without political resistance for example). But what oddities remain, one must learn to accept as fiction, lovable and enjoyable fiction with historical elements, but fiction nonetheless.