[Imp]

Okay now I understand what you are talking about more, there may be a case for better protection adjustment not staying adjustment however if defender gains extra protection so does the attacker of course.

The situation you show lets assume no arty as if attacker has dropped defender should often have done likewise adding time.
Attacking squads first have to get in position if no smoke or arty will definetly need 3 squads as first probably lost a couple of men.
They probably can however take him down because he is a lone squad.
If the defender has chosen terrain correctly though they will face say a platoon so it becomes difficult to get the 3-1 ratio first guys may not even see the defenders as move up before running back.
As the game stands then the easist & safest way to take a block is at its corners normaly due to less defenders then roll it up. This also has the advantage of hopefully letting you isolate the block by getting behind it. The deffender of course is trying to stop this with covering fire from other blocks.
So there are tactics & a slight increase in building terrain cover may improve them making a straight run at the block more dangerous. Hovever as the attacker gets these benefits to he will have less pinned units & so can coordinate attacks & get in position in the first place easier.
So the problem is now both sides take less damage suppresion so getting your squads in position facing the road is easier for the attacker. If he now has 3 squads in position who take less suppresion whats to stop him using 2 to draw all opfire letting the 3rd who has suffered no suppresion due to stray fire nip across the street into his hex?
Just thinking out loud this might make the attackers job easier as he has more good order units & will be subject to less surprise opfire shots as the defender cant lose suppresion it does not have.

The Z fire I said that most shots including the HEAT round should stop in the first dense hex entered rather than bouncing most of the time.
But its fudged old code you could not fire at a hex you cant see & I am fine with it for the little effect it has on the game.
As you tend to use this when you have other units near to the hex you are Z firing like in a woods & you want to move adjacent it represents the fact you might hit them by mistake, yes its abstracted a bit but gives the right feel.