So Germany is divided then.
Yes it is, OTL 1945-esque.
Bavaria appeared to be part of the Danubian Confederacy sphere, while the French have some sot of Western Germany or whatever name it would be while there's Communis Prussia.
Correct, but Danubia also influences Saxony and Thuringia, while the French share West Germany with the British.
Is the Ottoman Empire standing strong then? What does this mean for Arabia? Is it ruled by the Sauds or Hashemites?
The Middle-East is kinda out of the scope of the question, therefore you can bend the events and the overall situation there completely to your liking. The map shows the Ottomans, since something had to be shown, but the previous map had an OTL-like modern Middle East.
I must say that though, that if the Ottos stand strong, then either a Rashid Arabia, or a divided Rashid-Saudi Arabia is the likely situation.
In 1.0 I was operating under the assumption that France was Communist, which is why there would be a joint war involving the Soviet Union against Germany. With the UK involved, it changes things up a bit. I'm picturing a more or less 'contained' war between Germany (and Mitteleuropa) on one side and the British, French, and Soviets on the other, with basically a repeat of the First World War on the Western Front, (except brought to an ultimate conclusion instead of ending in a treaty before the war enters German territory as it actually was in the First World War) while the Eastern Front begins in Germany's favour then tips towards the Soviets.
Would the technological situation allow such "contained war" to take place. It strikes me, that WW2 tech warfare does not allow a standstill to be significantly extended.
Who is the aggressor in your proposed sceniario?