So far I fully agree with you. Still two things need to be added:
1. How much is Tundra, arctic climate or desert?
2. What were the real life Victory Points (HOI speak)? I suspect in December 41 the only missing VP was Moscow - being the reason why Stalin didnt flee Moscow. Admittedly I dont know (and none probably knows) for sure.
1.) A lot is that, yes, but you're still looking at a huge amount of land in the east in the same ballpark as trying to bite off everything in the continental USA west of New Mexico and Colorado (assuming their western border stretched all the way to the Canadian border).
2.) Major victory points? Moscow, Stalingrad, Leningrad, and Vladivostok. And yes, the Germans got close to Moscow, but what makes you think
taking Moscow would be easy? The real fun would happen if they actually tried to enter the city and make it theirs, as we can see from the Battles of Stalingrad and Leningrad (neither of which fell, despite German boots in the cities), and there's no reason to think Moscow would be any easier than Stalingrad.
If there's one thing that is far, far, far, far too easy in the land war in HOI, it's taking cities. If someone did not want you to take a city, they could turn it into a meat grinder that turned whole armies into piles of corpses. Meanwhile, in HOI, you can simply waltz in and take it in a few hours by having a second division attack the city.