So I tired out your strategy and the only downside I really see to it is that you can lose a lot of your airforce if Britain decides to scramble against your attacks in sz 110 and 111. I do like the idea that Russia is compelled to do counterattacks against the German assault so they do not turtle the whole time. It makes the game more interesting and fun.
After trying you strategy I have come up with my own kind of hybrid of yours and a save Italy strategy. Seeing that you are a believer in supporting italy I think that you might appreciate it.
GERMANY
Build 1 Bomber and 1 Fighter placed in Western Germany, 1 Destroyer placed in sz 112
COMBAT MOVES
SZ 106
1 sub from 117
1 sub from 108
SZ 91
1 sub from 103
SZ 111
1 sub from 118
1 battleship from 113
1 fighter from Norway
1 fighter from Holland
2 tacs from Western Germany
1 bomber from Germany
(If you want to save the battleship you can just use the other sub from SZ 124 as well which should be enough fodder for your planes, I want to save it however to block the Russian NO)
SZ 93
2 fighters and 1 tac from Western Germany
1 bomber from Germany
(The French fleet will normally get one hit, kill off the bomber first and the tac second if you need to. This way you can land as many planes as possible to scramble in southern Italy.)
France
4 inf, 2 arty, 3 tanks from Holland
3 inf, 1 arty, 4 mech from Western Germany
Baltic states
3 inf, 1 tank from Poland
1 tank from Hungary
1 tac from Germany
Eastern Poland
2 inf from Hungary
3 tanks from Greater Southern Germany
Bessarabia
2 inf , 1 tank from Romania
1 fighter from Hungary
1 tac from Poland
NONCOMBAT MOVES
All planes from SZ 111 go to Western Germany
All planes from SZ 93 go to Southern Italy (except for bomber if it lived, in which case it will go to Western Germany)
Sub in SZ 124 goes to SZ 125
Cruiser and transport go to SZ 112
2 inf from Denmark go to Norway
3 inf in Norway go to Finland
6 inf, 2 arty in Greater Southern Germany go to Hungary
11 inf, 3 arty, 2 AA in Germany go to Poland
1 AA in Germany goes to Hungary
1 fighter from Bessarabia goes to Hungary
1 tac in Bessarabia goes to Poland
1 tac in Baltic states goes to Poland
(The three AA guns in Western Germany you can split how you like, depending on how the battle in France went. Italy will not be taking southern France, that will be left for Germany so it would be a good Idea to put at least one AA in France and one in Northern Italy to use as fodder in case France tries something crazy.)
Should leave you with 62 PUs for the next round.
Let me know what you guys think. I have not had the opportunity to test this out against a human opponent yet but I will let you know when I do and how it went.