Yeah. Desovietization does seem to be the most likely outcome. After all, the real Allies hit Germany pretty hard with Denazification. The only thing I can figure is that perhaps since Russia is so large, there weren't enough Allied troops to properly occupy/rebuild Russia, so instead of dismantling it like they should have, they appointed the "puppet" Romanov in hopes of streamlining the process and avoiding chaos. Perhaps there was an Iraq-style insurgency combined with an anti-war movement/war weariness that seems to afflict the Western Democracies.
And maybe Yuri had something to do with it. Who knows?