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In an ideal world, and Italian region would work exceptionally well.
Italy is a goldmine of cultural references and is very diverse in both geography and climate and has rich fauna and flora.
They could make fairy-type foodmons, actresses-inspired waifumons, plenty of water types, gladiator-inspired steel and fighting types, ice types from the Alps and fire types from the volcanoes, dark types representing mafia (and a Neo Team Rocket with Giovanni making a return), truffle-based grass types, a Vatican-inspired legendary, the possibilities are endless.
But as anons said the current woke culture would definitely mess things up. Galar was full of pajeets and Paldea is full of gender fuckery, neither of which are appreciated in Italy, a traditionally right-leaning country.