I completely understand not wanting a randomly firing event that could kill off important leaders at a moments notice since that would just annoy most people but I think there is a strong argument for losing officers who are forced to surrender or are dismissed (or executed) for failure. In both cases you'd have a degree of choice or at least it wouldn't come at you as a surprise. If the command of a particularly beloved general is being over-run you can work to extricate him or just return him to the pool in the same way Rommel was recalled from Africa. It would add a lot to flavour without being as random as more generic casualties.
Removal of officers is, I think, a must when simulating things like the Russian Front. One idea is that if a general is defeated there could be % chance that an event will pop up for countries like Russia or Germany (but especially Russia) making the player chose between that general being removed or a small increase in dissent or drop in national unity. It would be a small enough hit that you could make an exception if it happened to someone like Timoshenko but with too many exceptions it would start to effect the war effort. An interesting consequence of that would be that you might worry about putting your best commanders where the fighting will be thickest in case they disappoint and he have to make an example of them. While this wasn't a rational used much during the war I think it would more accurately simulate poor front line generals who were so often appointed for political reasons.
Removal of officers is, I think, a must when simulating things like the Russian Front. One idea is that if a general is defeated there could be % chance that an event will pop up for countries like Russia or Germany (but especially Russia) making the player chose between that general being removed or a small increase in dissent or drop in national unity. It would be a small enough hit that you could make an exception if it happened to someone like Timoshenko but with too many exceptions it would start to effect the war effort. An interesting consequence of that would be that you might worry about putting your best commanders where the fighting will be thickest in case they disappoint and he have to make an example of them. While this wasn't a rational used much during the war I think it would more accurately simulate poor front line generals who were so often appointed for political reasons.