No, I think there is a disconnection between reality and the game. In the game, it is exactly the engine that is upgraded. It's not the panzer being retooled and made lighter or given different wheels or whatever else. It's a new engine. In game. What we should look at is the game because that's what we are playing.
But the funniest thing is that people keep taking tanks as example while we are talking of ships, thinking that the german tank upgrade methods should prove that ships shouldn't be upgraded in the game (?!) while demonstrating the exact opposite at every post.
Panzers were taken from battlefield, retooled and built from scratch for improvements ? Fine. In REALITY mind you. IN REALITY. And how is this different from draining a ship in a port and refit it ? I don't see any difference from a strategic POW, it has been done, and even if it never happened it would still be possible to do it.
Now let's move to our GAME ABSTRACTION. Those same panzers that you say IN REALITY would be taken to a workshop, dismantled and reassembled, are upgraded on the field investing IC\days. Then why, pray tell, can't the same happen for ships ? Why for ships the upgrading system but be totally realistic while for all the rest the game abstraction is accepted with no problems ?
Btw, in reality there would be a reason to upgrade vehicles and ships this way: because what costs more are resources, materials, not "IC days". But ingame you don't directly spend materials/resources to build stuff (big flaw IMHO), hence recycling has no meaning in game and one might think that it's better to build a ship brand new because hey, it doesn't actually cost you more materials than refitting it if it will cost the same amount of IC days.
I don't say this - I say they stay in service exactly as they were built and fight alongside the newer units coming off the assembly lines.
I'm not saying that certain things should not be able to be upgraded in a ship - just that taking a WWI battleship and upgrading it to the equivalent of a Bismark class ship is virtually impossible, and would probably be harder than just building a Bismark class ship from the keel up. The same goes for taking a PKwI and making it the equivalent of a Panther by constant upgrades of armor and guns (though this should be impossible).
The game abstracts the upgrade process for land units because they can be upgraded a tank at a time. The brigade that the tanks are part of can continue to fight because they can be done this way.
The naval unit though is something that can't be done this way. To really refit a ship, it needs to have its fighting capability dropped to zero for a really long period of time to be able to retro-fit it with larger guns, or whatever you want. Also, this retro-fitting is limited not just by what you want to upgrade on it, but also the engineering of the rest of the ship to be able to handle it.
Yes, you should be able to put a better fire control or radar or AA on ships - or fit a ship with torpedo capability. These things should require a much shorter stay in drydock than some of the major changes people want to do. Just because your engineers have figured out how to make an 18" naval turret/cannon does not mean that that cannon is able to fit on a 1920s era battleship hull. Just because you have researched a powerful engine does not mean that the areas in the engine room of all your ships can fit it. The amount of work that goes into upgrading these ships that cost so much to make in the first place is staggering, as the few cases where ships were upgraded has shown.
In game terms, I would not mind having ships upgradeable to a point - but the following would definitely have to be in effect for it to happen:
A) The ship would have to be taken completely out of commission for the duration - no sudden upgrades of the ship while it's out doing a naval bombardment and has been sinking shipping all over the globe.
B) Insane time requirements based on how much you are upgrading.
C) A limit on the amount that the base ship can be upgraded. If you have a 1918 class ship, don't expect it to become a modern day ship through upgrades. Perhaps have a 'base' ship (i.e. your ship on file would have as stats :BASE: Hull 1918 Guns 1918 Engines 1918, etc. Have each category only upgradeable various amounts (i.e., a hull may only be one or two techs, guns 2 or 3, radar unlimited, etc.)
D) Multiple research fields need to be present for the upgrade to be available. You want to upgrade the guns? The hull also needs the research to be upgraded. You want to upgrade the hull? The engines need to be modified to be able to keep you at the same speed. There are a lot of things that need to be balanced to make an effective fighting vessel.
A CAG should be upgradeable on a CV as long as the deck of the CV is long enough to be able to handle the take offs and landing requirements of the planes. At some point, you're going to have planes that won't be able to land or take off from the shorter decked early carriers.