I like the idea of a powerfull Italy in the Med. it creates the possibility for tension with the Germans and the French. There could possibly be a string of events that lead to a conflict between Vichy and Italy over Algeria (Tunis and N. Algeria were part of Roman Empire) this would make things a little more interesting for Germany, which side should the German player choose? But I also think that Italy has too large a foot print in the Middle East, it would possibly liven things up a bit if there were many small succesor states in the Middle East (this would make it possible for the U.S. Reich, and Italy play little proxy wars, shaking things up a bit). I also think that a puppet Russia is a bad thing for Gameplay, a relatively strong Soviet Union that is reliant upon American aide would be a nice touch, having them conduct a constant war of Attrition with the Germans in the Urals would add some flavor for the game. But I am definatley for a 'Revisionist Rome' that has a new EXTREMELY nationalist leader that takes proactive steps to reacuire the lost Roman Empire by expanding into Spain, France, Turkey, and the Mid-East. This foreign policy by the Italians would obviosuley be in direct opposistion of the Reich, Germany should hold a weak stance on the Italian Aggression due to it's involvement in the Urals and the Cold War against the U.S. Also the U.S. should extend MASSIVE amounts of Lend-Lease programs to the remaining Allied powers (i.e. Free France, British Commonwealth Nations, Soviet Union etc.) this would compensate for these nations relative weak posistions and would allow them to constitute a real menance to the Reich. Also a string of Proxy Wars between all the Major Super Powers and Emerging Super Powers (Italy) would be interesting to see. And possibly a Communist revolutionary movement in Vichy France that is created in reaction to Germany's dominance and mounting Italian Aggression. Also a possible economic recession in Germany to symbolize difficulty in demobilization after the main conflict, this would at least cut back on German military developement and keep the Reich from developing into a 500 division Power House, also possibly some events for Germany restricting the size of the Army to resonable sizes to simulate the German People's restlessness at the constant mobilization.
Just a few ideas that I think would add to the game and make it a little more difficult to play as the Reich (which under current game situation would be way too easy to play as and relatively boring).