[Raellus]

"In the end, the NATO divisions of Operation Reset are overrun, survivors fleeing into the woods. The final order from HQ is short and to the point: “Good luck. You’re on your own now.”"

p. 148 v4 Player's Manual (Alpha Version)

I still think this is vague enough to allow Ref's room for interpretation. It doesn't say "destroyed" or "annihilated" or "wiped out". "Overrun" doesn't necessarily mean any of these things. Several US divisions could be described as having been overrun during the Battle of the Bulge, but organized elements of said continued to fight on. German divisions on the eastern front during the later years of WWII were routinely overrun, but many broke out of Soviet pockets and fought their way back to German lines, sometimes over and over again.

As to the Soviet invasion of the UK, I agree that it doesn't make much sense either on either a strategic or operational level. Yes, it would be a morale blow to the Brits, and yes it might cause the UK to withdraw some of its forces from the continent, but is that worth the sacrificing of an elite division? It's a pyrrhic victory at best. Once the Brits managed to wipe the lone, isolated Soviet division out, the morale effects would flip (better for NATO, worse for the Soviets). Even if the Soviets could get them there (which I find highly unlikely), keeping them supplied and fighting for more than a week or two is going to be nearly impossible without total control of the sea lanes and air corridors between Scandinavia and the UK. In the very next bit of the history, they have the USN wiping out the remains of the Red Fleet.

Iceland makes more sense, but I reckon Free League didn't want to rip off Red Storm Rising and risk a lawsuit from the Clancy estate and Larry Bond.