It's alive!
If the Air Force was already there in '35 one could perhaps argue that Göring will not become its C-in-C? Which in my book is a big plus!
Word. OTOH, without Goering's ability to persuade Hitler, TTL's
Luftsreitkraefte might be very weak.
First and foremost Wever will spend his carrier in the Army.
This alternative Luftwaffe will most likely pay more attention to defense than it did OTL.
Maybe not. Lots of Army officers ended up in AFs in Britain & U.S. Wever might be Germany's Trenchard. IMO, TTL's
Luftsreitkraefte is liable to need somebody like that just to survive (much as RAF did). It might see
Luftsreitkraefte adopting strategic bombing theory (for the same reasons), without von Kesselring being able to reign it in because German industrial capacity was too low (which, FWI read, is why he cancelled the Ju-89 & Do-90 bomber projects).
Milch might not be involved in aerial affaires either. Major drawbacks, I'd say.
Oh, no.

Quite the opposite. Avoiding Milch's miserable management could only be a benefit:
some of the stranger ideas will never hatch, so there might not be any dive bombers
Yep. IMO, Ju-87 still flies, is proven too vulnerable in Spain, & is dropped. The mania (Milch? Or Udet?) for having
everything capable of DB (including 4-engine bombers


) doesn't happen, so the Ju-88 is a much better strike aircraft, & appears months sooner than OTL. Whether He-112 beats Bf-109 is an open question; the choice was partly on cost, & cost is liable to trump performance, especially with less political clout. OTOH, with a longer period of professionalism,
Luftsreitkraefte might be able to insist on the better type, even if it costs more.
The air force will, however, have more depth, so to say, and, I suppose, a larger organization and reserves and thus be able to cope with the loses of war better than OTL.
Agreed. Maybe more on point, training will be more rational, & with a longer period of professionalism (presumed), the need to preserve the training program if war doesn't go as planned (by the maniac douchebag

in charge) will be recognized.
but some sort of fighter bomber instead? No jets either, I suppose, but perhaps better interceptor and/or fighter designs?
Hmm... *thinks* Really good question. I'd expect something like the Hs-129 to take the place of Ju-87 at war's start, supplementing the Ju-88. Probably the FW-190 is adopted a bit sooner, accepting the loss of production, since TTL, production is rationalized & all of Germany's a/c industry is producing one fighter type, the Bf-109.
As war goes increasingly bad, I have to think an improvised defense a/c would occur to somebody, something not taking material away from frontline fighters, leading to (say) 2-pulsejet Me-328s or Ba-349s with batteries of 55mm or 73mm rockets in the nose, (zero-) launched on vertical rails by RATO. (A similar idea was examined by USAF postwar.) Nothing so complex (or dangerous!

) as the Walther-powered Me-163...
Without the DB mania, there's a chance a more/less strategic bomber (a 4-engine B-26, not a Lanc) might enter German service early in the war, in time for Barbarossa (if not BoB).
Politically and militarily speaking, the SS might end up even more powerfull, perhaps with its own air arm?
Maybe. The more important questions, IMO, are:
- does Kriegsmarine get its own ocean patrol/strike a/c? This would be a very significant multiplier for BdU's commerce war.
- does Luftsreitkraefte actually maintain strategic bombing, or is it solely a "German Flying Corps", tied to Heer? A capacity to strike back at Britain in some fashion was a political necessity, especially as Allied bomber attacks intensified. It also has important potential butterflies for bombing of Soviet manufacturing plants beyond the Urals.
- does Luftsreitkraefte (does Hitler?) allow attacks on Bomber/Coastal Command bases? (OTL, Hitler didn't.) This could have enormous consequences.
- does Luftsreitkraefte authorize V-2s? Does Heer? The impact of this is fairly obvious: thousands more aircraft built, if not.