Oh dear oh dear oh dear....
OK, its the L-word time again folks.....
How is Hitler going to bring Britain to its knees? Well, he doesnt have any sea power worth mentioning, so he only really has 3 options. A direct attack on the UK (in 1841, doomed to an utter and comoplete failure that would make a 1940's Sealion defeat look successful. The British had over 30 divisions available in the UK, and Germany still doesnt have any ships)
A successful U-boar campaing. this always looks good on paper. unfortunately the Atlantic isnt paper. The RN had actually defeated the U-boats in 41 (the hight losses in 42 were mainly dye to the Americans), and in 43 they re-won it. Germany isnt going to change tactics until 43 (when lets assume, after withdrawing his U-boats Doenitz gets new, improved versions), and it will take at LEAST a year to get them into real operation. By which time the RN A/S gorce is a lot stronger (remember, in this case they arent going to slow/stop escort production as they did in OTL). The third option is of course North Africa. Now, we have issues, We cant make the Axis forces much stronger in 41 as they are limited by the forward logistics problems. Now, they could do things to improve this by 1942 - a railway along the coast, plus a better road, plus delivering supplies further forward (bear in mind they did NONE of these in OTL). Now its feasable to attack in 42. Good luck by this time at getting through the Alamein positions - its possible, but the losses will be horrific. You can now take Egypt. Luck you, you now have some pyramids, with 1,000 miles of trackless dessert between you and any oil. Said oil fields will of course be destroyed before you get close, but never mind. You should be able to get there by 43 (remember, it takes TIME to build up road and rail links in 1942). Congratulations, you now have the fun task of taking a British Army in India (falling back onto its lines of supply and support) while at teh end of a long extended line through the desert.
Whatever happens in an African campaign, its slow.
Now all this time, Hitler is (a) hoping Stalin keeps supplying him (something that was getting really tense in spring 41 OTL), and (b) the USA just sits there. Now remember that my the end of 40 the USA had basically comitted itself to around 30,000 aircraft a YEAR for Britain - come what may, these aircraft will arrive. the LW will be SO thrilled.....
And thats not to mention the USN buildup.
Oh a few other things. yes, SOME of the Arabs liked the idea of the Germqans (whether they would keep liking it after the germans arrived and they found out their scheme in the pkace of things - just above monkeys -is another issue), some of them were supporting the British.
Um, look at a map and see just how far that oil was from the Bosphorus, and the total lack of infrastructure between them.
Now granted, none of this is actually impossible to overcome. But it assumes that both the USA and Russia just sit there (getting stronger and stronger by the day)m and do nothing. At all. There is a word in the military lexicon for countries that ignore enemies of this power just sitting around, its called Loser.
Oh, and regarding losing the med making the British support via the Cape and India? Thats what they did in OTL....not quite sure why its so different this time.
There was no serious threat of an Indian revolution in 42 despite all the reverses, its no more likely here. The Indians wanted independance, they didnt want to be part of the German Empire.
But the British could lose the Med, the Middle East AND India and it still wouldnt get german troops any closer to the UK, and all the time Tube Alloys is workng on (probably with a huge difference in priority this time)
Basically the Germans could NOT 'win the war easily', and winning it with difficulty would entail the sort of strategic risks that no military (except possibly the japanese, and look how well that worked out..) would consider even for a moment. Even ignoring the fact that the whole POINT of WW2 was so Hitler could attack Russia. Sure, lets ignore that and let Russia keep growing and growing stronger and stronger...and any POD that suggests Russia not being a target basically butterflies WW2 away completely.