I think the relevant Churchill quote, from 1937, is "One may dislike Hitler's system and yet admire his patriotic achievement. If our country were defeated I hope we should find a champion as indomitable to restore our courage and lead us back to our place among the nations."
Given his track record as Home Secretary, his later behaviour during the General Strike, his attitude to Empire, it's not hard to imagine that if Britain somehow lost WWI and followed the same course as Germany did after its defeat, then Churchill would end up plowing a fascist furrow in the 20s and 30s. I don't think he's ever going to quite be Hitler, but I can certainly see him being Mussolini (someone else he expressed admiration for). Brutal and undiscriminating anti-communism is a given, and while I doubt Churchill would become one himself his party will certainly include anti-Semites.