Axis don’t have to do anything to South France. Unless UK puts unit(s) there. That must be what you are thinking of
Vichy isn’t necessarily “awesome” for the Axis. It is not easy to take Normandy G1 - you have to siphon units from Paris and that could hurt - BAD
Allies can take over several French territories that they wouldn’t be able to before, and one of the huge things is USA can take control of Morocco, Algeria, and that means they can build bases there potentially. Before Italy could just not take those territories and leave them blue.
Mark my words, it’s just a matter of time before everyone realizes that the Allies were given way too much in this scenario and we will be bidding away Allied NO’s. By the handful.