Very nice - interesting PoD itself. A war between Savoy and Milan-Montferrat would probably prove disasterous in Montferrat proper, as it'd be the most likely battlefield, but it would be vital to turn N.Italy over to M-M. Perhaps M-M can ally with Burgundy and Switzerland? Having a few more Cantons back would probably cheer up the Swiss. Not sure how Burgundy could justify taking over parts of Savoy however.
Yeah, inevitably a Palaeologid dynasty with Imperial ambitions would need to prevent his happening. Hence why I'm intrigued by the Savoyard Crusade - With the Ottomans pushed out of Europe properly, it buys the Empire (and Montferrat) time. Time in which Montferrat can engineer a takeover of the Empire.
Although, obvious thought is obvious. The Montferrat Palaeologos are Catholic. So they'd obviously be pro-union. I wonder how the Propontis would look with a Catholic, Orthodox and Sunni power each on it. Messy.
What do you think the priorities would be if this dynasty gets its fortress Gallipoli and N.Italy w/Genoa - would they make a play to take Venice, move south to take over the rest of Italy - get endorsements from the Pope -> Move into Rome?

- Talk about a weird path for history. Montferrat-Milan takes over N.Italy, holds Gallipoli and then brings the rest of N.Italy into its realm (much politicking involved to prevent Imperial punishment), effectively takes over Rome (gets its own Pope on the Papal Throne?) and ties the Papacy to Montferrat-Milan-Rome in the same way that the Patriarch of Constantinople is tied to the ERE. Suddenly we have both Christian Pentarchal Sees answering to two branches of the same family. If the ERE is taken over through war.. woo boy, the propaganda would be something to see.
I could see M-M making moves into the Balkans as well, or at least the Adriatic coast. Without the Ottomans to invade, M-M-M could be faced with Serbia and Hungary. Eeep.