The general understanding at the time was that his father, Shri Hans, was nearly God but not quite, while Maharaji was actually God.  So until young Prem came along, people made do with an 80% incarnation of God.

That's not true.  Not only was that not the "general understanding of the time", no one I knew in the cult ever mentioned anything like that theory.

I think the general understanding was that first, it was possible, indeed necessary perhaps, for there to always be an incarnation of God alive at any one time.  Not two, that would be impossible.  One.  Shri Hans was that one when he lived (at least from a certain point when he became the Perfect Master until his death, although when he became the one is a little vague, to say the least). 

When Shri Hans died, God took over Prem Pal fully and he then became the new living incarnation of God, just like his dad before him but, as he claimed, with more power than ever before.  He just chose to stuff more ammo into the cartridge this time.

THAT was the general consensus, I'd wager.