I like the mechanics of it, in terms of functionally giving players a free "Increased Priority" Artillery Deck card, which could really help rain down some off-board firepower on their foe. At the same time, the unit also has the Recon specialization, which is great in-and-of itself.
I wonder, however, if there's a way to keep the unit's specialization hidden until it's first used? This would reflect the common practice (both Axis and Allied) of having these tank variants fitted with dummy guns in the turret so from their outward appearance they looked like standard tanks. Maybe something like this: The player with this unit places Transport Markers under all their tanks, and then off-board, hidden from the other player, they place the Recon Specialization Token under the associated Transport Marker. Upon first use, the player reveals that tank to be the "Observer Tank," and then places the Recon token next to that tank and removes the Transport Markers. Too complicated?
Not to be nit-picky, I will also note that the correct spelling is "Increased."