I agree on the subject of the HRE, though surely it wouldn't be hard to imagine reasons as to why they would "blob" (and there were quite a few OPMs left at the end after Saxony collapsed). As to Italy, isn't that basically what happened? Tuscany got too big for its boots and was crushed when the Austrians arrived, allowing Naples to grow, only to be crushed by the Ottomans and be plagued by revolts. The only issue I had with Italy was Venice taking Rome early on.
It's more of a representation issue than a gameplay one. In the game it makes sense why things happened the way they did, but had a scenario played out like that in real life it wouldn't be "Tuscany expands, Austria takes land from Tuscany, Naples takes land from both", it would be, "Tuscany expands, Austria intervenes to give the land back to its rightful owners/Austrian puppets". EU still does a pretty bad job of representing the need of various states and rulers for legitimate claims to the territory they control.
After all, the Italian wars ended with Italy almost entirely under the complete control of Spain, but it wasn't through direct annexations as they had no legitimate reason to do so. Rather it was control through puppets (outside of Naples and Milan).
I guess, but the Devs have already said that Burgundy can't become France, probably reckoning that if Burgundy crushed France they would be recognised as the king of that area.
Really? That's a terrible decision. Indeed, if the rulers of Burgundy crushed France they would be recognized as the rightful kings of France. AKA becoming France.