Success isn't the debate here.

Success isn't what you're arguing about: it is in fact key to my argument. You may think that's irrelevant, but you haven't actually addressed why that is.

I have no disagreements with you that Italians had more than enough equipment to fill out a faction. But CoH factions are generally designed around portraying a force during a notable campaign. For example, the PE were designed around the German forces defending against Operation Market Garden while OKW are meant to be the Wehrmacht during the Ardennes Offensive.

I seriously doubt people would be excited to play a representation of the Italian 10th army. Their operations were not only unsuccessful but obscure. CoH is aimed at a more popular audience by design. The portrayal of North Africa most consistent with that approach is one which emphasizes the conflict between Rommel and Montgomery.