Yes, the USA usually nuke Germany and Japan if they get the Chance to do that.
I've seen the AI pepper pacific islands with nukes in 1.08 SUBR. Spectacular but useless...doesn't seem to affect the defenders at all.
Further wishes:
I certainly second the idea of having more control over where supply convoy endpoints are. Player should have complete control over this.
CAP as the default mission for fighter types, including adjacent provinces if radar techs permit. (e.g Chain Home, Kammhuber line)
Techs to increase player stacking limits or decrease penalties (CCC doctrines)
Techs to reduce rebasing penalties (fleet train, air unit ground element relocation)
Techs which depend on actual combat experience to be available (reduce US and USSR advantage while at peace)
Larger effect of USSR purges--lose doctrine techs, reduce industrial efficiency etc.
Reduce the effectiveness of strategic bombing. Read the USAF Strategic Bombing Survey people! Didn't achieve anything much until mid 1944. Unescorted bombers should be meat. They are way too strong.
Add Northwarders option for japan. An attack on the USSR was seriously considered as an alternative to Pearl Harbour. Buildup would need to start much before 12/41, possibly activated by Barbarossa, that would make sense.
Fix bug in Molotov/Ribbentrop 'No deals with the Bolsheviks' option which kicks GE dissent 10, not 5 as advertised.
Fix production sliders to be percentages of available rather than amounts, to avoid the endless fiddling they always seem to need. You should be able to set e.g. Consumer 100% of need, supply 105% of need, and determine the split of what's left.
Fix auto supply and convoy, which is a complete mess. Usually in 1943 or 44 half the JA island garrisons vanish because the AI can't manage the convoys and won't build enough replacement TP and convoy.
Player should be able to prioritise convoys, and prevent the AI from messing with them.
Transports with paras loaded should be able to rebase.
UI needs to tell me about command and stacking limits so I can set up attacks intelligently. The way this works is pretty random and with 4 field marshals I'll get anywhere between 12 and 48 divisions working properly. Since the AI seems to be able to optimise this at all times, it's really, really annoying and probably the single most irritating 'feature' of the game. Damned if I can figure out how it actually works. I'd like to see more consideration of multi-national armies too, these should not be as effective as single-nation ones. At the moment all units which are allied seem to be pretty much interchangable in combat as far as command is concerned. This should require a tech or something to get right, and historically it was very difficult for those affected (GE->IT, RM, HU, UK->USA, CA, FR, etc)
Make naval units upgradeable to one level higher than when built. The IJN made extensive modernisations throughout the 30's, down to machinery and replacing the upper works. This should be long and expensive, but less so than a new unit.
AIs which have gone into garrison mode will not defend themselves properly if there's a new threat, can this be fixed?