/Imperious leader
Now we’re getting down to it! Trying to figure the Italy situation, I think that the changes will be smaller than you propose, if we try to extrapolate from the AARe changes I think:
Italy 16 IPCs;
Italy 8 IPCs (AARe never divided Germany into different areas!)
Balkans 3 IPCs
Sicily 2 IPCs.
Tripoli 1 IPCs
Tobruk 1 IPCs
Italian East Africa (1941 scenario) 1 IPCs
6 Infantry + 1 German Infantry (Afrika Korps)
2 Artillery + 1 German Artillery (AF)
1 Tank + 1 German Tank (AF)
1 Fighter
1 Bomber
1 BB
1 CA
1 DD
1 AP
More than this would make Italy too powerful! In the Med. I would expect: something like 6 sea zones, so that the British fleet in East Med. wouldn’t need to be reachable first turn. Malta would be added. It could probably be easily taken but with only one AP reinforcement of Africa could be more important (just as in the real war).
In Africa you would have Tripoli, Tobruk, Western Desert and Egypt areas, with an IC in Egypt. Then you could have a tug of war and everything not decided on the first turn. If balanced correctly, UK would have to move troops through the Med. to actually win vs. a good Italian, making the naval war all-important and Malta useful as a landing zone for troops (perhaps not totally historically correct but in the spirit of the war certainly). The naval campaign could be even in that Germany couldn’t commit subs and planes just like that due to different turn order, otherwise UK med. fleet would just be massacred!
Maybe the Afrika Korps could be able to forfeit its move and wait till the Italian move, in that way the desert campaign would be easier to conduct (?).