ORIGINAL: John 3rd
How about if Hitler had taken Raeder's strategy to take Malta and Gibraltor to effectively seal off the Med and then grab Egypt? Always seemed to me that this was a missed opportunity to FINISH off the Med. The move might have freed up several valuable German units as well as most of Italy's troops and forces. I KNOW how horrible Italy was but the Italians could have freed up additional German units in SE Europe for the USSR.
The Italian Chief of Staff, Pietro Badoglio made it very clear to Berlin that Italy wanted to eliminate Malta permanently as a threat but Hitler put them off due to German disinterest in the Med (unless they were in complete charge), the thought that air and submarines alone might be decisive, and distrust of Italian feats of arms. At the time (late 1940/early 41), there was a window of opportunity vs. Malta and while Italy was not yet prepared for a full scale amphibious assault in 1940, a fuller cooperation with Germany and the use of Paratroopers might have gotten the job done.
The heavy losses at Crete though coupled with Hitler's fear of the RN pretty much scrapped it despite continued noises.