Would it be possible for Austria, perhaps through ties with France and/or making it easier on itself to mobilize, or something else, managing to hold its own against Prussia in something like the Austro-Prussian war, with these reforms starting say, a decade before the war? Austria unites with South German states Baden, Wuertemberg, Bavaria, and Saxony while Prussia finalizes unification with the remaining German states. The Magyars and Slavs (excluding those in Bohemia and along the Adriatic Coast) use the war as initiative to revolt.
So how plausible is this timeline? If it's remotely possible, what would the consequences of this be? Would Prussia's momentum be broken or would it redouble its efforts to unite Germany and punish France? Would Austria be able to quell Pan-Germanism and avoid Berliner dominance? Sorry if this seems laughably stupid, first go at it.
On a side note, I was thinking of combining this with the CSA also winning independence, so two (eventually, anyways) Great Powers are divided. Interesting idea?