The 'problem' with Italy, is that Benny and the Fascist party in reality were not the only ruler of Italy; The King (and the military), the church and the big industrialist had all their saying in how things were done.
So Mussolini, unlike Stalin and Hitler instead of phisically elimininate the opponent, decided to mollify and co-habitate with them.
So for the army, after the war, it was decided to let go the more younger officers and keep the more older...so to not create grumbling and appease them.
Many industries receivied goverment contract (expecially for the armed forces) just to keep them working and quality control was never ever an issue as they can basically done as they see fit.
To keep things quiet and not have any problem of someone trying to get his job, Benny surrounded himselfs of non-entity, yes-men that depend on him to keep the job...anyone that can be considered a threat or too capable to obscure him (like Balbo) get dismissed or receive a golden cage.
Maybe a more violent revolution, Italy become a repubblic and a true dictatorships like Germany or URSS...but frankly as italian i prefer a buffonish performance in WW2 than to have a better fame thanks to stalinist purge and mass extermination of a good size of your own population