Okay with Asia having the Soviets mean's North Korea could be better off, but also see Asia in general, doesn't become China's future stomping grounds. The Mongolian People's Republic or it's successor state would still have strong ties to the surviving Soviets. North Korea would at least an alternative to China, So would the DRV in Vietnam.
A reformed USSR will probably be state capitalist, albeit with more regulation and state-owned industries than even the PRC has.
If they abandon communism in favor of state capitalism and enforce it on their satellites, the 21st century will probably see the "Cold War" become a second Great Game of sorts, with the USSR and the USA vying for economic supremacy and fiercely competing with one another. The actual threat of nuclear war will probably be significantly lessened.
Not quite it really depends on what the POD for this is. If the POD is much earlier on, then it's a3-wayy contest between the Soviet and Chinese backing Communists and forcing them to back one a side or play both sides for aid, against nations backed up by the U.S. At least under Khrushchev, the Soviets were experimenting with some elements of market socialism that was popular in Yugoslavia at the time, but that got rolled back under Brezhnev. Threat of nuclear war was already gone because Khrushchev had considered peaceful coexistence with the U.S to much more barring that stupid to build silos and station missiles in Cuba.
Maybe for a POD we have Khruschev not go through with Cuban Missle Crisis by not stationing missiles in Cuba, because of this he is not forced to step down allowing for a controlled liberalization of the Eastern Bloc. China would act it's own antagonistic way as in OTL, at least until Mao kicks the bucket.