In fact, it could even be argued that Germany should collect the IPCs for these Vichy French territories after capturing Paris. … but that might be going a bridge too far.
While I agree with this in spirit, I do think it could be taken too far. You could have people that say it should be this way for all countries: Once the capital is captured, the capturing power now controls all the territories and units of the vanquished nation.
For one thing, this would eliminate any possibility of liberation and I think this game would end up being a sort of Deluxe Risk rather than Axis & Allies.
Imagine this scenario: Germany goes after Russia and tries punching straight through to Moscow along the north route, thereby NOT taking Ukraine or Stalingrad. Suppose Japan didn’t attack Russia at all in the far east. Now suppose Russia was foolish and bought a battleship for the Caspian Sea instead of infantry so they didn’t have a proper defense in Moscow and Germany wins. Now Germany controls territory all the way to the Pacific and Japan now has a buddy to their north instead of an enemy. Plus, Germany becomes instantly rich, almost doubling their income with all the Russian 2 point territories plus all the troops that were guarding those territories (not to mention Germany’s shiny new battleship in the Caspian Sea.).
I wonder if a crazy rule like this would make games longer or shorter? Capital defense would probably be even heavier.