A more severely damaged Italian fleet would probably be unable to launch the resupply and amphibious operations discussed around Crete. That gives the island a strong chance of remaining in British hands in this scenario. Crete could then provide bomber bases within useful range of Romanian oil fields. Greater Italian battleship losses would also change or prevent engagements such as the Battles of Sirte that helped convoys reach North Africa. Italy supplied both its own army and the German forces there, so losing convoy protection would affect the entire Axis campaign.
Notable Point · 45:03-46:23
A heavier Taranto strike could keep Crete and cut Axis supplies
An Italian fleet unable to support operations around Crete or cover North African convoys could change the land war as well as the Mediterranean naval balance.