No, Laissez Faire isn't getting punished, because that is exactly what Laissez Faire is a proponent of. But I already mentioned this in my first post.
When I say LF is getting punished, I'm speaking in terms of game play, not accuracy. I am stripping Vicky 2 of all real world context and looking at it purely as a game. In this view LF is not the name for a philosophy of economic management where the government does not interfere in the private sector, it's just the name for a party policy where the player cannot build RRs, factories or subsidize. Not being able to build rail roads is a draw back in game play terms, a punishment. It's an accurate punishment that makes sense and is a logical consequence of the context the game is grounded in, but it's still a punishment. Being unable to build railroads is not as good as being able to build railroads. Having drawbacks to a system is fine, as long as there are also benefits. LF has none. There is no reason to ever run LF in this game.
What's even worse though is that LF is even being punished on a whole other level: it is the only system that is forced to act historically. Intervensionist, Planned Economy and State Capitalist systems will all gladly plaster Africa in RR's, even under AI control, regardless of how realistic it is, but the capitalist AI simply won't do it. Either:
1. Capitalists should build more RR's in colonies (like they did in Vicky 1).
OR
2. Building RR's in Africa under the other systems should be a bad idea, or at the very least questionable.
Otherwise you create a system where LF has to "play by the rules" but every one else gets to break them. Building RR's in colonies is a sound economic decision in Vicky, but the capitalist AI isn't doing it for some reason. It's achieving historical results through ahistorical methods. Capitalists should be building anything and everything that makes money.
LF should be viable, and in fact should be "the best" under certain circumstances, both from a game play standpoint (all the systems should be viable depending on circumstances) and from a historical standpoint. They need to change it because it is not working. Nobody ever wants to play LF. Allowing the player to build railroads under LF is not how it should be changed, but they need to do something.