I would have to disagree with you on this point...
Being playable, and being able to do a WC are totally different.
I dont think there should be any way on normal settings that yugo should be able to do a WC alone

. Any decent minor should be a playable country, but not be able to be the sole ruler of the world.
The inability of the AI to react to different threats is another reason I'm waiting for the reviews to come in before I buy this game (hoi3 is the main reason I'm waiting). Because of the strick AI files there is not much flexibility in the AI's ability to counter different threats. Like hoi2, that will just detract from the longevity of the game for me.