Germany wasn't the only country in ww2 whose navy/submarine arm suffered from badly designed systems in their torpedoes. USA had similar difficulties against japanese. Surely they (germans) didn't lose the war because of this. The problems with the torpedo pistols, depth keeping fins etc. were solved pretty much after the Norway campaing. It is strange how it is possible that the torpedoes were so unrelieable in the early part of the war.
I rarely have any duds in the game since I use only the impact pistol and don't set the torpedo speed to fast (this was banned until mid war).
Edit: hmm. the earlier reply I'm pointing here just disappeared