When I first looked at possibly getting AA 1914 and reviewed the rules online - my very FIRST thought was that Italy should be a variable entry. Referring to history, they could have gone either way! I agree with you - keep it up! My first idea was perhaps simply let Italy sit out turn 1 - then entry thereafter is based on a die roll of some sort such as 1, 2 = they go Entente (as per History) 3, 4, 5 = stay neutral that turn, and 6 = they go with Central Powers (as per their agreement before 1914).
I hope to see more on this. Gabe