Le Ran said:
Sorry but I dont think you can be so affirmative about that.
1) About british surrender : think about France. France was also a mighty colonial empire, french people was a lot more anti-german than the british (no need to detail why I think

). The nazis hated the french a lot more than the english (that was true for Hitler and most german officials - first of whom Rudolph Hess...). And when France was invaded, the British Empire was still by its side. But french government asked for the armistice nevertheless - "to save what could be saved" according to them. I dont see any good reason to affirm that, after the fall of mainland England, the british would not have sued for peace with Germany. Well, surely Churchill wouldn't, but how long do you think Churchill would stay in charge after an invasion of England ?
I have to disagree with you on this one and I think your comparrison of Britain and France is wildly out. There are some major differences between these two nations at that point in history, particularly when you start comparing the capabilities of their respective empires.
1) The British empire, although already in major decline, controls coutries such as India & South Africa (to name just two) which contribute large quantities of troops and other production valuable commodities (e.g. far eastern rubber - well represented in the game).
2) Britain leads an alliance of nations - the common wealth - and therefore has a number of fallback options (I believe Canada had in fact been prepared for exactly this eventuality)
3) The attitudes of the British - the typical British arrogance and the belief that we would win through.
4) The fact that the French were hardly well treated under German occupation would only stiffen resolve
I am not saying that Britain was undefeatable (although that would be typical of someone with my nationality!

), just that a capitulation would not have happened on a successful German occupation of the British Isles.
However, I think that Germany was onto the right plan when she tried to starve Britain out. If the people of Britain could really be made hungry and desparate and not have the capability for war then I feel that that really
would have put the government of the time under pressure to come to terms with Germany - now this is an event I would really like to see - If Britains industry can be reduced to x for a period of y (I have obviously not done any figures here!) through the lack of resources reaching the Isles, then a British 'bitter peace' event becomes a possibility. America must also be considered in this equation - and a true convoy version of lend-lease becomes necessary for the mechanics of the game (this has always bugged me - you can't intercept a game event but sooooo many ships were sunk enroute to Britain!)
The question then becomes - what are the consequences of the leader of the commonwealth comming to terms? The situation is now very murky and difficult to calculate as much depends on Japan too. I see several possibilities:-
India becomming independent (and either fighting on or comming to peace)
Canada, Aus & S.Africa signing perhaps signing the same treaty or fighting on
I would also suggest that much depends on the status of America.
Of course all only my opinion - and I am no history student. Greatly interested in other peoples thoughts on this. Great thread.