The Ju-87B was initially hauling a 500 kg bomb, and was up-rated to the 1000 kg bomb by 1940. On a 1000 HP engine.Radial engines instead of the Jumo 211 for the Ju-87 (or equivalent) runs into a problem.
Once you get to the "B" series they have 1200hp for take-off. The Germans do not have a 1200hp radial at the time.
They barely have 1000hp radial and prospects for more power are slim (water injection?).
The Ju-87R was rated for a 500 kg bomb and two drop tanks, and was also up-rated for the 1000 kg bomb + two drop tanks. Also on 1000 HP.
Indeed, the Hs 126 was a crappy bomber. It was also too much of a short-range recon. Sorta German Lysander?Germans also need the Radials for other projects. They are not quite the 2nd tier engines that are sitting in warehouses.
The radials were powering many aircraft that may not have been in the spotlight but did things that needed doing.
The Hs 126 doesn't get a lot of love but it equipped 47 army cooperation squadrons in the attack on Russia in 1941.
As bomber it was crap, but if the army commanders do not have good recon then things don't go well.
So make more of the Fi 156s, you might get perhaps 3 of those for each 2 of the Hs 126s not produced? Also, one could fuel perhaps 3 Strorchs with the amount of fuel one Hs 126 used.
Frees 900+ radial engines.
Then the Do 17 later versions - neither speed, nor bomb load, nor defensive firepower worth talking about. rather have Dornier making the He 111s, at least these carried more than double the bomb load, aircraft vs. aircraft.