Blind mans bluff is a good documentary which highlights the submarine world, in the first two portions it shows you the limitations of diesel boats note the USS Cochino and USS Gudgeon incidents.
While conventional submarines are very good at what they do they certainly have some limitations.
The other side to that is conventional especially the Kilos are affordable by nations whos defense budgets are not as big as some of the major players, The Kilo can offer a 2nd or 3rd rate navy the ability to force multiply as well as increasing their capabilities ten fold with regards to ISR SIGNIT ELINT and covert operations.
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