Since starting an Italian campaign of my own, I decided to look up a few Italian AARs....this one is certainly different. Looking forward to whenever you get back to it, although my campaign will probably be ancient history by then.
My last campaign was with Hungary, which went quite well (despite having only half the Leadership and IC of Italy), occupying or annexing ALL of the Balkan peninsula (except for those with Italian cores),controlling the eastern side of the Suez Canal (Italy controlled the west side), and managing to drive an independent advance corridor all the way to the outskirts of Stalingrad and throughout most of the Caucasus region before Germany collapsed. That collapse happened mainly because GER burned off FAR too much manpower through attrition while fielding considerably more than a hundred heavy armor and motorized brigades in the mountains of central Norway, fed through a small port into horrendous infrastructure, and consequently their offensive in the Soviet Union ground to a halt due to lack of replacement troops only 2 provinces short of Moscow. That in turn left the long northern flank of my own advance unprotected. At that point, I had no choice but to withdraw, and offer some token defense across the entire front (Germany's and mine) with my meager 20 divisions at the various river lines along the way, to slow the Soviet advance. I quit the campaign as lost when Soviet troops entered Germany proper, rather than fight it out to the bitter end, even though my own territory was still intact.
After working with that campaign's scarcities, running Italy is almost a luxury, except for the spectacularly bad Commander skills and the top-heavy and convoluted plate of spaghetti that passes for an organizational structure...but I'm working on those. On the other hand, Hungary doesn't have to spend research and IC on a competitive navy. In this campaign I WILL DEFINITELY send a transport ship or two to some German port on their northern coastline BEFORE entering the war on the Axis side, just so I can later land a division or two of infantry in the south of Norway and take the capital to save Germany's army from starvation. You would need to secure Gibraltar to do that now in your campaign, since the strait is presently closed to your ships. Note that taking the British Isles can be a cakewalk, if you use your war fleets to block the Channel temporarily on both sides of your transport fleet, and use land-based air to contest the skies over the Channel until your transports offload.