It very well might be correct. It really depends. If its representing the shell penetrating the tank before it detonates, then its correct. If its representing the shell exploding on the outside of the tank, and then the tank dying to spalling, then its partially incorrect, as the driver would be safe-ish depending on hit location (the only crew member you have to kill to destroy the tank, it seems), and spalling might not do a thing to the engine (and HE hits seem to be guaranteed kills).
However, it seems to be the former, as I have yet to see a low velocity HE shell kill a tank at extended ranges, which clearly indicates that the shell is simply failing to penetrate the armor at extended ranges, and this is doing no damage.
HE rounds can damage tanks in AH. It may not destroy then but HE rounds can certainly track a tank.
True. But we can't reasonably expect a 122mm to destroy a Tiger II from the front with our current modeling. About the best we could hope for is that a near miss from something like a 152mm has sufficient blast to destroy with a near miss, in a manner simmilar to the 8" gun (although I have no idea if the 8"er can even destroy a Tiger II, since I haven't tested it, and even a 152mm seems a bit small to contain a sufficient explosive charge).