And with no Verdun of the Mediterranean the Royal Navy and allies has an additional 76 Warships, 48 Submarines (the number lost to Axis forces between 1940 and Sept 1943) and the med is open for business (no going around Africa) - and that means allied business.And the Germans are less depleted without fixing what Italy spoils
Italy is still notorious for its inefficiency
In fact, without Italy, the Nazis would be spared from the Balkan and Mediterranean front, and the occupation of Yugoslavia and Greece, which greatly exhausted them.
So it's still an improvement for the Germans
Japan is far less likely to attack British holdings with x number of Divisions, 1000s of Aircraft and WW2 is likely known as the 2nd Great War being almost totally confined to Europe.