Thank you!
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As Italy you don't really get a commander who can get the Sea Wolf option at start (at least not that I saw), so I had to farm for it and it definitely took a while. That gave me the opportunity to see how effective this is both with and without that trait (and subsequent traits).
At the beginning of war with the Allies in 1939 (and thus war with France and UK - No US yet) I was able to get 1940 subs along with sub tech Snorkel, Electric Torpedo and Magnetic Detonator. I only had commander skill Concealment Expert. I also did the Trade Interdiction doctrine about 3-4 down the right side (at war start).
The subs were still very effective at killing screens and convoys, with the occasional capital ship (heavy on the occasional). While I didn't get results like the above screenshot with this set-up in 1939, it definitely made life easier, especially if my strike force joined the fight. Controlling the Med was a lot less terrifying.
After getting Sea Wolf, Silent Hunter and Loading Drill Master skills for my commander, along with Snorkel 2 and Homing Torpedo, my subs were unstoppable. The only issue I had is that once again capital ships were still getting away more than I wanted, but I was definitely getting more and more of them during each battle, and if they did stand and fight (like the IJN did here), then it was sink city.