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Calling the culture of entire Mezzogiorno (I prefer the term more than Southern Italy) to Sicilian or Neapolitan does wrong to other, although Neapolitan could be preferred as Neapolitan culture has spread to wider area and Neapolitan language has more speakers than Sicilian language. I also think that politically Kingdom of Naples was more important than Kingdom of Sicily (insular kingdom without the mainland). Although I admit that division of Italian culture to North and South Italian has worked well in some other Paradox games. And while Norman-Arab-Byzantine culture is sometimes called Norman-Sicilian there's really no good or standard name for that culture. Often it's just called Arab-Norman culture without any references to Sicilians or other Southern Italians.

So is referring to all Arabs as Bedouin, considering it's the only 'Arab' culture in game... In game cultures are not and will never be 100% especially when you have some that differ so little between them as those in Italy. And in fact using a purely Geographical term to describe a culture, does a little more harm then using a similar culture as a generic term. Hence why all North africans are Berbers instead of North African, and all 'Arabs' are Bedouin instead of Arab.

(Note that by 'arab' I mean the people inhabiting the Arabian peninsula, not those in Syria Jerusalem and Mesopotamia.)
 
So is referring to all Arabs as Bedouin, considering it's the only 'Arab' culture in game... In game cultures are not and will never be 100% especially when you have some that differ so little between them as those in Italy. And in fact using a purely Geographical term to describe a culture, does a little more harm then using a similar culture as a generic term. Hence why all North africans are Berbers instead of North African, and all 'Arabs' are Bedouin instead of Arab.

(Note that by 'arab' I mean the people inhabiting the Arabian peninsula, not those in Syria Jerusalem and Mesopotamia.)

At least there isn't single Arab culture from Spain to Oman, but the division of "Arab cultures" is far from satisfactory (when at the same time some very small ethnic groups in Europe have their own culture). I'm not against having a South Italian culture (if you can invent good name for it) in game, I just don't agree that it should be called Sicilian. It certainly would be improvement to current situation and some people would be happy if North Italian culture would use lighter vanilla portraits, while South Italian culture would continue using Mediterranean portraits.
 
I actually created a melting pot mod for Sicily ("An Offer You Can't Refuse, or AOYCR) a while back, if you want to check it out. The link's in my sig, but it's been incorporated into most of the major mods in some form or another, too.

The way I handled Sicily was to have 3 cultures all localized to Sicilian, but located in different culture groups; the culture which formed depended on the league. Therefore Siculo-Arabic, Sicilian (formed from Normans or Italians, IIRC), and Siculo-Greek. Some of the mods which incorporated mine changed the localizations though; I'm pretty sure Siculo-Greek was named Griko, as suggested above.

Didn't do anything with Normans and Italians, though, so that'd be an area which could use some attention for sure!