Ok there is some merit to building an AB for Gib UK1, and merging all available ships to sz92. The ability to send the UK Med navy to the Atlantic will most likely table a German Sea Lion buy for G2 w/o dropping a bunch of inf on London. As others pointed out an AB at Gib is also very helpful in staging allied fleet in sz91 as the game goes on. You would defiantly need to take into account what Germany bought G1 though. A loaded carrier, cruiser, damaged BB (that will auto fix on Germany’s turn) and a couple transports sitting in sz112 is a real threat to your new Gib base with only air. In this scenario you should be looking at using the Med transport to bring over an inf and the Malta AAA gun to protect your ftrs, but that weakens Egypt.
Many people are in the camp of forgoing Taranto, to spare the UK Med fleet. Sometimes they pull back into the Red Sea (sz81), or make a stand in sz92 (as AldoRaine posted) and bringing in the India fleet in is also an option. The point is that the Italian navy will eventually come out to play and it is easier to kill it when they don’t have the support of the Rome AB. Plus as others pointed out the Italians might add to their toy boats which means fewer units heading to Russia.
The thing is that if you do merge all available UK ships to sz92, and build an AB for Gib you really don’t want to get double hit by the Italians then the Germans play mop-up w/o taking heavy losses. eames57 took the words right out of my mouth, you have to block out the Italian navy by placing a dd in sz94 (the French in sz93 completes the block).
You still run the risk of getting hit by the Luftwaffe, but that would also cripple the German air force so IMO it would be worth it. It’s better to take out German planes over Italian navy especially early in the game. At some point (maybe later when the US comes over) the Italian navy will be at the bottom of the Med, where the Luftwaffe is essential on all fronts through out the game. So in retrospect it isn’t in Germany’s best long term interest to attack you in sz92, so there is a good chance they won’t.