One additional point:
Norway is 5 territories away from Berlin. Without a Baltic fleet the Germans will have to use valuable fast units to break the Anglo-American forces there. This also means that, since it’ll take some time for German forces to reach Norway, they’ll have to commit way more than might be necessary in case the Western Allies go all in on reinforcing Scandinavia well. With Western Europe, German industrial complexes are much closer, so there’s much less range and uncertainty over how much would be needed to repulse the Allies. It’s the same reason why the Balkans can be so deadly.