My understanding is that in the 1930's it was being marketed for law enforcement use.Well .38 Super isn't a military cartridge, or even much of a police one. Mostly Major pistol shooting or civilian use in countries that restrict 'military' cartridges.
To recap my prior comments, with regards to this fictional time line, adopting the 1911 for military use in a caliber that was less powerful than .45 ACP or .38 super seems a bit strange to me.
The more I reflect on this topic the Walther PP seems like a reasonable choice in the early 1930's.
Later if / when SMG's are wanted perhaps another handgun would have been adopted in what ever caliber was being proposed for SMG's use.