I disagree on the Air units. I have done it as the UK, held of the axis swarms right over malta and controlled that area. By doing that I controlled Egypt. I did that in one of my last games where I was the UK. In the same game I also bombed the crap out of German industry numerious times reducing it by 100-150 IC. I did all of this with no US and the same CW rules as now. So dont tell me it cant be done. It depends on your tactics, strategies and how you want to play the game. In that particular game I gave air and naval the importance it needed with the army third.
I do agree like I said in the above posts that I think the CW restrictions should be lifted. However so should Italian war entry, other wise the allies know exactly when Italy joins and there is no suprise. The Uk can plane a big defence as it knows when to expect the attack. If the Italian war entry is left open then the UK has to chose were to defend with its large CW forces what forces as it should be.
Nolan is right, we do have to many rules and restrictions. Often our rules unbalance the game further as they are made in haste to events from 1 game.
My point of view is probably all except gibralter, everything else can be held with the right forces. Gibralter will never hold if the germans really want it which of course the do. However Malta, Egpyt and the Seuz are all able to be held.
From a German perspective I would never dare send forces to the middle east if the UK player at least put up a strong defence around malta with air and ships. The risks are simply to great to risk expensive panzers. Its only in most of our games no one really tries to defend that area. Not to pump myself up

but I only seen myself and major defend that area in a handful of games.
So in conclusion yes I agree, there should be no restrictions on CW forces or War entry for Italy.