Here is my UK game update:
It is late 1940 now, everything is developing pretty historical. So far two theaters of naval war have opened, one in Northern sea and one in Meditteranean.
In Med. I'm fighting heavily and often with Regia Marina. Their fleets are made up pretty good (they have a main fleet with their 4 improved BBs (should be BB2 though) and a secondary pretty powerfull fleet made mainly of CAs). They are also making a good use of their NAVs, they even managed to severly cripple a couple of my BBs.
In northern sea there were some clashes with Kriegsmarine but considering the fact my best ships are patrolling the area I won most of them. Germans too have a pretty good fleets, the only thing I'm bothered with is that they tend to send small fleets (1 CL, 1 or 2 DDs) on patrol missions where they usually lost the whole fleet. They didn't dare to do that IRL. Their NAVs are pretty much inactive (or they didn't active enough), its a shame they don't use Norwegian airbases (would add some favour).
As for the subs the things are strange to say the least. I'm using them quite extensively in the meds and so far I have yet to lose one. I don't know why Italians don't use some of their ships on ASW duties. At least they attacked my SS, usually with NAVs but they didn't do much damage (I believe their sub attack rating should be higher). Maybe SS org is set a little to low as they disengage a bit to quickly (a little flaw is, that when you research better SS doctrines their org goes up so they are easier to destroy. I reccomend that improved SS doctrines actually lowers the SS org).
German subs...So far I didn't encounter a single one!!! I have at least 30DDs (and some 14 frigates) in 5-6 fleets assigned for ASW and they didn't spott a single German SS! Something is clearly wrong here. There were some attacks on my convoys (so far I lost around 50 transports) but I suspect they came from surface raiders, not SS...
Some other suggestions: IT would be great if AI would use NAVs for convoy raiding duties and (considering the new role of NAV and CAS) CAS for naval strikes...
edit: German AI should send their pocket BB on convoy raiding in Atlantic