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I like the penal legions, and the priests help get those re-rolls to hit in there, but you could probably do with only 2-3 of the priests. Considering you want to screen troops in front of Iron Hand, but keep him near the front lines, you could easily have his 12" bubble effect 2 squads or so.
And I'm assuming that the general tactic is to have the autocannon squads cover the legions advance into CC correct?
If you change the layout to have about 3 infantry squads with autocannon teams incorporated, you could ensure the survivability of the autocannons a little longer.
That or make some of those legion squads/infantry squads into veterans with the Demolitions doctrine. Demo charge and meltabombs are wonderful anti-tank in close combat
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