UK does Taranto most times in our games too because they simply don’t fear Sea lion much. Alpha+3 gave the English a pretty big security blanket adding extra inf for def, and extra AAA guns taking hits pushes it even further. The Allies also know that if you spend for Sea Lion (6-10 transports) that Russia will be a monster, and the US can probably liberate London easily and trash your tranny fleet anyway.
With that said, I will still threaten Sea Lion (you need to carry it out sometimes too keep them guessing). A typical buy might be a carrier and transport G1 (and do not kill off the German battle ship) so that I have a couple transports, loaded carrier, BB, and cruiser sitting in sz 112. That will make them at least think twice about sending the bulk of the RAF to the Med. You can still use the fleet to go after Russia through the Baltic. Your improved fleet will also help you retake Norway if they get it, and make the Allies bulk up more then they want to if going north (may even delay them a turn later in the game). You of course still need to hit both English BBs in the Atlantic.
If they are doing Taranto, there are two streams of thought:
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Scramble all 3 ftrs (2 Italian, 1 German) and try to take out as much of UK’s navy as possible, then counter attack (they will try to preserve air power most likely sacking the DD carrier and one ftr maybe more).
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Don’t scramble any, lose the sz 97 navy (it’s gone anyway), but the UK has some choices to make if you mange to get a couple hits. The UK will probably leave the carrier loaded, and what ever ships are left (flying their remaining air to safety). They know that either Italy of Germany is going to kill it in a counter attack. The tricky thing is the defending carrier in your counter attack, if they take a hit on the carrier their planes will die (can’t land) so it can be very interesting if you don’t scramble, and plan a counter attack.
Italy’s navy gets clobbered most games, you just need to make sure that it hurts the UK. I agree that trying to take out the UK cruiser in sz 91 (Gib) helps some. We normally attack both sz91 Gib, and sz 106 Canada w/1 sub each hoping to get one or the other, but take 2 subs at 91 so that cruiser doesn’t hit you. Sending a German ftr to S Italy is a must so you have the ability to scramble 3 ftrs (1 German, 2 Italian). Just because you can doesn’t mean you should though.
Give some more territory to Italy so they can get their income up. You might try to strafe Yogo w/Germany G1 so Italy can take it It1 easily (when doing this bring one inf from Romania so all your units can leap frog to Romania in the retreat BTW). We have even seen Germany smack Paris, and back out so Italy can get the 19 IPCs to rebuild their navy (there is some risk there, but we’ve never seen the RAF land in Paris to try keeping France alive).
Anyway, good gaming IL