There was one attempt to solve this problem by creating fleet Rome variant, but that only strengthen Austria greatly and gave Italy some new choices, but not really solved the problem of Italy being the weakest force in the diplomacy world.
Perhaps that could be a solution to this, the one that would have everything Italy has now and some additional possibilities to improve Italian chances to compete for supremacy. What if, we gave Italy one additional unit, to be specific, one additional fleet in Rome. 99% of the time Italy captures Tunis, but that draw away unit that cold be more valuable in the front lines rather than be sitting in the remote center of Tunis. If Italy has that build made before the game starts, there is the whole new world of possibilities. Once could be Rome-Tyrrhenian-Gol if Italy decide to go west (and that would make initially the strongest France being somewhat less strong), or perhaps Rome-Tyrhenian-Tunis and that would leave Fleet Ionian free to participate in the events regarding the Greece and Austria-Turkey correlation. Lots of options for Italy that would certainly strengthen its position. Its hard to see how would that influence other powers, but one could think that France would be somewhat weaker, Austria would not have usual 90% odds to take Greece, and Turkey would not be the defensive fortress it is now.