My understanding is that the game begins with the invasion of France already underway. It would be folly for Germany to break this off unfinished to attack Russia.
Perhaps Larry decided that a 1939 scenario giving Germany the option to go East or West just couldn’t work.
The idea of Soviet units all fighting at 1 to represent the lack of leadership is interesting; but I repeat that the main reason the Germans did so well at first was that Russian units were deployed for attack; i.e. the air force was distributed amongst front line formations and was destroyed on the ground.
And, again, that the lack of rail movement cripples the scenario. Germany and Russia moved their units overwhelmingly by rail, while the other powers relied largely on naval transport. Unless Germany build a huge transport fleet in the Baltic (which it cannot afford), or builds a second invasion army in Berlin (which it cannot afford) it cannot deal effectively with the two front war unless Russia is either crippled politically by a one-way Hitler-Stalin pact, or pincered by a huge Japanese invasion of Siberia, which most of us regard as unrealistic.
I would also like to see the economic effects of the Pact represented; e.g. Germany gets X IPCs from Russia every turn until they are at war. This might help an earlier scenario work, but the problem of Russia being kept at bay while Germany goes West remains.
http://en.wikipedia.org/wiki/Molotov–Ribbentrop_Pact