Here's my input on your DDII concerns. If I did not address any specific one, it's because I have not yet formed a definitive opinion.

I recommend tossing out the replacement points. The battle was too short for this to have been an issue.

If 109/28 can be eliminated on the first day because it wasn't attacked on the opening turn, this needs to be fixed.

Do not give Lehr Recon any more special consideration otherwise its importance will be out of proportion with reality.

I would retain Combined Arms. Have it work everywhere except against fortifications.

Yes, give Heydte a ZOC like other combat units.

Eliminate the restriction on night interdiction but no effect on advance after combat.

Absolutely!!! Allow combat after reserve movement. This just may be the trick needed to open the game up a bit for the Krauts.

Absolutely not to ignoring enemy ZOCs in advance after combat. This would require a complete paradigm shift on how the Allied Player conducts his defense.

Retain Strategic Movement Mode when next to an enemy unit without a ZOC.

If a unit has no ZOC, it should still be obligated to perform mandatory attacks against adjacent enemy units.

Just have the CRT read 1-3 or less. Odds of less than 1-3 are treated as such on the CRT.