i once played A&A this way, and it was rather fun. alltho i was on the winning side.
we played where once a capital was gone, that team was done, period, no returning at all.
GB, germany and US allied. me as great britain. we basicly poned up on russia, then focused on japan.
but the great twist was that i broke the alliancat the end.
we also played w/ liquidation rules, where u can kill your troops and receive money for them (i know its un realistic, but its fun sometimes). japan liquidated everything that wasnt on japan, and placed inf on japan; they ended up w/ like 60 inf on japan!!!
in response, US liquidated all non pacific forces, as did germany. and i was expected to as well
i had a loaded transport in the gulf of mexico on its way to the pacific and of course one in briton still. i simply made an alliance w/ japan, and sent troops to EUS and germany, ending the game.
it was quite anticlimactic, but rather humorous for me and japan.