Muhail2:
Ricochets are nicely simulated by small supression around the hex, which receives fire. What I'm talking about is the whole volley of all squad's rifles and MGs going somewhere far from the target. That can't be explained by an ocassional ricochet. By the way, I really doubt that a 120mm HEAT round can ricochet and go as far as 100m from the targeted hex.

But it does, in game.
About the blocks:
With the current defence values, soviet platoon can easily rout the german soldiers back into the block and than some with plain fire across the road and than advance unopposed. All in 1 turn, 5-7 minutes. If you're lucky, 3 squads are even too much, 2 could've done the job just as well.
With the proposed changes they'll have to bring down all the fire they can muster and then advance en-masse to sucessfully assault the enemy out of the block edge. 3 squads are the bare minimum to conduct this, just as in real life. And it will take 2-3 turns in most situations.
You see? It just seems so very same at first, but the differences in the details are great. Urban combat can become a serious business =)
BTW, that suggestion is based on the Squad Battles, which have a quite decent urban combat, though with flaws of their own, but I've taken them into account.
Also, you don't need to go in details about rooms, levels and backyards. That's just not in the scale of SPMBT.
Pregenerated maps with separated building hexes, as I understand it, were just made for the same purpose - to spice up the urban fighting. Or to represent a village with few houses. But these are pregenerated and are in minority.
And I don't think we should take AI in consideration. It can't use 70% of SPMBT features, why bother with him now?