Italy would've been more pleasing for the terrain, but I Spain is more easier to make for a open world
game.As for Italy:
North has a colder climate with the Alpines for snow, valley etc. Important cities as Milan, Turin, Venice etc.
Mid Italy is a mix between dry and rich grasslands, forests and all the important towns. Also Mount Vesuvius, the roman empire leftovers, the harbors in Genua and the coastal line. Calabria where you can do a big mountain pass and a lot of caves. mountain villages etc.
South Italy is tropical, pretty much like Alola but more dry. Sicily is pretty much a vacation paradise in summer. Palermo is unique, Mount Etna could be a HGSS Mt.Silver 2.0.
Plus the whole sea between the shoe and Sardenia, where I would put the starting town on. Many mini islands, the Aelian islands which could be mini Alola in the region.
Game Freak could go ham for Italy but I don't trust them. I desperately hope they'll get replaced by the time Italy get its turn.