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I do believe the Romanians used that plane...
Some of the versions of the He 112 were almost completely different from one another. So I can't see how it's development potential could be questioned. First you'd have to have a difinitive type.
This He-112:
View attachment 298282
Doesn't look much like this one:
View attachment 298283
I think it had potential and, had it been selected, I have no doubt it could have been competitive with other fighters well into the war. Might have had to go with a thinner wing to get a lot faster ... don't know since it wasn't developed and I haven't put in a lot of He 112 aerodynamics investigation time. But if they can make a whole new fuselage, why not a whole new wing with an inherently faster airfoil? I certainly like the canopy and landing gear better than the one on any standard Messerschmitt Bf 109.
Not going to happen. Me-109 performed just fine and was inexpensive to mass produce.
He-112 would be competing against Germany's second iron in the fire (i.e. Fw-190). He-112B is ok but IMO Fw-190 was better.
Not under historical circumstances. Initially RLM funded DB601 engine production at less then 50% of original plan. Hence engine was in short supply even for Me-109 and Me-110.
Provide DB601 engine with full funding from 1936 onward and it opens up all sorts of possibilities such as Fw-187 and DB601 powered Fw-190.