In Axis and Allies, could a house rule upgrading the German navy finally "balance" the 1942 game?
Interested in what you say here about the Allies having a slight edge. I assume you mean First Edition here.

My friend and I have been playing for years. We originally used to think that the Allies were slightly ahead. Usually this was due to US being able to afford a bomber or two that nails down German economy. 

We have had the optional rule of fighter defense turned on for a long time. This makes it much harder for the Allies to strat bomb Germany.

This seemed to give the Axis a break and have been consistently winning 1942, but we are now trying new tactics as Allies that is making a difference.