Generally, especially in the early game, ceding the territory is the way to go.

Rome landings realy arent much of a problem for Germany, as the opportunity cost of those units not punching thru Cairo are enormous.

Personally, I love to see USA extend his shuck in the early game, defending both SZ 12 and SZ 14 is very difficult without spending a bunch of (unnecessary) money on capital ships (BS and AC), and having enough trannies to do so efficiently is very expensive as well.  Every dollar USA spends on non-ground units is a boon to the Axis.

In Revised USA doesnt have an enormous monetary advantage, and so there is only so many things they can accomplish.

Keeping Paris stacked tall is far more important for keeping the Allies out of Europe for as long as possible.  A stack of Ftrs tere make USA extending past 12 very difficult.