Japan shows that Better status isn't worth much, you can have it and still be 100% subject to the whims and vagaries of the reigning President. And yes, Japhetites, Hamites, and Shemites for the three Betters.
Yes, but if the NP is nicer they can at least split South American Protestants. I'm thinking a group of modernizers who see collaboration with the RU as a way to 1) live 2) update hidebound old customs. And then there's the traditionalist, more uncompromising faction that makes common cause with the Catholics they live with because they're that appalled by the RU, and are accepted to varying degrees by the NP states.
Either way there really probably aren't enough of them to fill up an army (unless a LOT of German Lutheran migration bound for America went for South America instead and mission societies turned a number of Catholics, but then again both of those things have produced quite a few Protestants in South America OTL); their value really comes from being able to maybe provide slightly more taxes than the average peasant, importance of the "Protestant" label to the occupiers, and possible distortion of the group's size either as a top-down (RU telling Latino collaborators to learn German) or bottom-up thing (Mennonites adopting war orphans and teaching them German).
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