I play with them on, and no I dont think this is all that unrealistic. It's well known that just like the British, the SS had spies and such that monitored British shipping, and ports and like the Captain in Das Boot said of this sort of espionage "they know exactly we ship out". So too the Germans did the same, and these reports would produce knowlege of when ships left ports and what ports and where they were going. And then infomation on this would be radioed to the warships at sea. The navaigator could then from this info put possible ships and thier likely locations at any given time on the map. It wouldnt always be accurate though for sure, but it was a good idea of where the Captain should be looking.
Adn so it is that this is what in my mind this map contact updating is attempting to simulate.
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"Chance favors the prepared mind"
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