Well, the normal thing would be to script the AI to do the historical path. From democratic to the revolution of Negrín. At the end it was indisputably communist. More communist that the soviets, maybe. "Homenage to Catalonia" George Orwell is recommended to read, as he fought in the civil war and explains there what he saw. In hoi3 was easily done by events. Dunno how it will change in hoi4.
Was the aim not to be less predetermined?
The most likely reason for the label is that it affects what happens, and as Johan has said, gameplay is the most important thing.
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