Hi Charlie,
It's a Sim. So If you're talking about the stock campaign , there's nothing particularly wrong about it. If your talking about an "un-modded" game, yes, then you've got problems. A lot of the mods are game fixes, and having them installed makes the stock campaign work fine.
So with a few good mods, yes the stock Campaign can be Dynamic and dangerous (talking about IRAI here).
The game does stick to the historical outcome of the war (the Stock Campaign only goes to 1943 anyway, I think).
There's no need to affect difficulty, As the war progresses, it gets hotter and hotter for the Kriegsmarine.
Hope this helps a bit.
D40
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Dogfish40
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