There is nothing wrong with Capital Capturing rules.
If you play without them it’s the same thing anyways, it’s just “destroy to big stack” rule instead. Imagine playing chess without a capture the king rule? How stupid that would be.
Axis and Allies is, always was, and always will be about pure economics. Capitals are a total sideshow to the actual game mechanic. Victory cities almost are aswell.
95% of games I win, a side gives up before a capital falls or victory cities limit are reached. Invariably your opponent knows they will fall anyways. That’s the course of the game guys, eventually only your units will be on the board if you play until turn 100.
The Trick is to always play for the money, and always play for the long game.
Get your income to par with your opponent or better, and focus on battles where you are more likely to win more IPC value than your opponent.
decide ahead of time, map it out, what territories you need to take from whom, to maintain economic game control. Primarily this will come down to British territoires n the south pacific, the middle east, and Africa. The rest is just widdling your opponent down.
As for German invasion of USSR. I would wait for as long as possible, and make defensive formations on the eastern front. This will either force the russians into attacking you and losing, or more likely, retreat to a buffer and leave 1 inf behind all along the eastern front. If they do that, take the territories they are giving up easily, and keep forcing the russians back through stronger defensive formations, whilst maintaining the economic balance.
Japan goes to Africa/Inda with the possible attack on USSR if America goes KGF. Either way, Japan meets america in Africa or Pacific.
CtC rule has almost no impact on game strategy for anybody past begginer and possibly intermediate players mixed with beginners.