@wittmann:
Japan is overpowered, Russia is underpowered and too easily neutered.
Germany might be just about right for me.
Italy: don’t get me started on how ridiculous it can become.
I am not sure, but I guess this has something to do with balance and playability, since this is supposed to be a fun game and not a serious simulation. If you try to make a game with the real numbers, Italy will not be fun to play. As I remember USA had 40 % of the worlds military potential, Germany and USSR had 14 %, UK 10, France 4, Japan 2 and Italy only 1 %.