See here is my oppinion, Its not that I don't want an empire to be able to be formed at least later, I just don't want an empire to ALWAYS happen, at that point it seems more like history is being railroaded in a game 1 about alternate history and 2 in a mod that IS an alternate history.
I want it to be a Republican Dictatorship because
1 I think it would fit just as well thematically
2 I think it will actually add a bit more flavor to Italia
3 I think it honestly makes more sense than becoming a straight up monarchy, Italia is a state in rebellion and trying to get its independence from Rome. I feel it would probably make a bit more sense that Itallia is republican dictatorship because in rome it wouldn't be that much of a transition for the current people, it makes the nation a bit more interesting since it is using a government type that isn't seen super often.
Finaly I think it should be possible to become a monarchy later but I don't think that it should be a full on "monarchy" when the so called "monarch" has barely in power for a month (considering that they are currently at war with SPQR)
A government should describe what is going on in the state, and considering the state is barely formed I do not believe it would have the same organization as a "Despotic Monarchy" because the organization just isn't there. Republican Dictatorship is a good "transition" givernment and gives a good description of what is going on. (Just as a fyi, Republican Dictatorship is the government of Commonwealth and Oliver Cromwell's England in EU4, and it is also used to represent the Second French Empire under Napoleon III in Vicky 2, so kinda think of how those governments worked when thinking about "Republican Dictatorship") ADDITIONALY it would actually make Itallia Stronger in the war.
Republican Dictatorship
+1 Tolerance of heretical religions
+1 Tolerance of heathen religions
+10% Morale of armies
Despotic Monarchy
-1 National revolt risk
-10% Unjustified demands
The Despotic Monarchy only helps at the END of the war, and I do feel it would make sense that some time after Italia becomes independent (if it does) it should be able to switch to a monarchy, but I still feel THEMATICLY it would fit them better to start out as republican dictatorship and transition to a monarchy later
Additionally
New republics will always start with 100 tradition and each year republican tradition increases by +1. Various events can make a player choose between sacrificing tradition or suffer another negative consequence. If tradition's too low, consequences such as increased stability costs (4% more per point below 100) and higher revolt risk (scaled linearly, -3 revolt risk at 100 tradition and 3 at 0 tradition.) Also, republican government with low tradition can collapse into despotism, with reactionaries spawning at below 50 tradition. At 0 the government automatically collapses into a despotistic monarchy (revolutionary empire for revolutionary republics) and the government can also fall if the same ruler is reelected with tradition below 20.
and of course we could have an event chain that leads Itallia to becoming a Despotic Monarchy.
Finaly I just want to say I don't think that Itallia shouldn't be a despotic monarchy, I like the idea but i very much don't think that it should a depsotic monarchy right away for the reasons I stated. and Additionally I don't think that they should win 80-90% of the time, at that point you are railroading alternate history, they should win a slightly above average amouts of time so you can see some diversity in Rome if you are not playing in Rome.
A player will ALWAYS be able to win no matter what side they are on, the AI in order to make the entire world and game more interesting and dynamic on subsequent play throughs should only be able to win about 65% of the time.
That is my argument, I will be done now.