Not a lot to report actually.... I did finally manage to take Paris on week 51. I have seen AI do that by week 6, I am so ashamed!

I also waltzed over to Iceland and took the city, which was undefended. Lack of shields no doubt; I am building workers there to start my reforestation project posthaste. I once had them build an infantry and draft also after I first saw they were defenseless like that, but that was back when they were part of Norway and had a bit of gold to spend, they were not big enough to draft this game.
I am completely mystified by the total lack of Allied naval presence in the Atlantic. I sailed about 15 ships, 10 of them U-boats under the Gneisenau around England and south to Gibralter. I have seen a total of 1 SS and 2 CL the whole trip. I am comparing my game to some of Adler17's and other's reports; I've yet to see one where Germany gave a war and no one showed.

The UK has almost no capital ships, but what about the French/US??? Maybe the Italian navy is kicking butt this game? Whatever the cause, the Atlantic is virtually empty! All I've seen in the Med due to my new bases in Crete and Turkey is a half dozen UK SS. It's WEIRD I tell you!
Vlad1917_a: Since you notice you have the light tank, you should also not it should hide behind your infantry because it has defense of 6. I agree though, maybe the cost should go down 10-20 shields. Can you build regular artillery? Heavies are nice but having more regular ones was usually better. I also disagree with you on countries like China not being fun; With less cites/units to worry about, you can do turns a lot faster. I enjoyed playing China a whole bunch, and that was without being able to rush buy. If you survive the game you will really feel like you earned it!
Adler17: I just don't see what role the S boat has to play in a scenario of this scale. Especially since you have CL and DD units competing for light raider jobs. I would rather just drop all the MTB/PT/S and E boats from the scenario altogether. Basically just let the fact that most of the big countries had them cancel each other out. My build queue in Germany is cluttered up as it is.
Grizx: Get a spy in Japan, and find out if you are being too cautious. There may not be much of a Japanese fleet left to threaten you. I've yet to see a Japan AI actually land on Hawaii, much less the West Coast! I was against your idea of a Japan or Germany early raid, but as a diversion.... possibly that has merit. It depends on how fast the AI responds to said raid. Panama is a bad idea to me, since the US has almost guaranteed a ROP with Mexico, and they can run down there double quick. The Island raids though sound good. I don't think you would get far though; the AI for sure loves to draft Infantry units. I am not sure whether you were considering that when you said the mainland is 'undefended'; they can conscript a bunch pretty fast, and US Infantry is top notch!
I also like the idea of considering US invasion of S.America to be more of gaining the use of their industry there. That makes quite a bit more sense; I am not so against the idea of taking them out when you put it that way. I'm still going to play a US game without going that route after I am done with Germany,just to see how it plays out.
Overlag: What Adler17 & Grizx said.

Artillery/bombard for cities, Air units for everything else. Also it pays to know your enemy air units and their operational ranges. While I do break the 'rules' quite often if I see interceptors or flak in a city I usually avoid it if possible.
Rocoteh: I just want to put in my two cents on the DDF. I LIKE them! Anything that gets the AI to build solid navy and well protected transports with high speed to make them a more interesting opponent is a big plus by me. Wait for more playtests to see if the AI will attack them but I know the AI tends not to attack my ships either if I stack them with a BB or two, there is not a whole lot of difference. The fact that they only transport 1 unit is fine, I've seen the AI send a full size transport with only one Marine in it too many times.

I also hate seeing the Italians unload a full boatload of it's starting armor on Cyprus and leave them there to rot. Having these in makes the AI much more dangerous, since they are fast and if you want to stop them before they hit your shores you have to push your naval patrols way out further, making CV units even more important. The main thing is these help the AI build both navy and actually get their tiny invasions to actually land, since we all know the AI does not protect it's CV or transport units for beans. Anything that makes the AI better at sea is a good thing IMO. As a side benefit, you will most likely lose some units taking them out; they are just not easy to go down, even with their weak defense. Also note, that I think their bombard is much more balanced, then say the S boats.

8 DDs with actual 5" guns should have some bombard ability.
So I vote the DDF should stay.
I would also suggest you add a tiny garrison force to reykjavik, unless it was your intent all along to have it just be occupied by whoever got to it first. I know that no troops there is accurate; whether you want it to be that easy to take I don't know.
BTW, did anyone else notice the lower defense bonuses for terrain? I am sure that is making it quite a bit harder for say China, who really needs to use that advantage to the fullest.