Germany can send considerable forces to Libya and they can even invade Tunisia and Algeria. So the fight over Algiers will happen. If the Allied player should delay the collapse in French North Africa they need to send British units there. OK, Casablanca falls later and Spain joins later, but you managed to kill several British units in the process. That will weigh up more than losing some PP's for some turns.
The Axis players needs to inflict as much damage on the Allies as possible prior to USA joining. Then the side will start turning. So if the Allied player offers a fight the Axis will win then I would consider it. The Allied player should use hit and run tactics prior to Barbarossa. After Barbarossa they Allied player can be bolder with the British because most German units are in Russia and can't dislodge there easily.
I disagree. The Axis cannot win the war of attrition. Period. The Allied player can easily use the French blob to do as much damage to the Axis as possible. The state of the fighter and naval units is another matter - as long as you can save them, you will be fine. If the Germans suffer too much damage in France, then this means weaker Barbarossa or they can reject the armistice, which is a long, bloody and risky route and no Barbarossa in 1941. The Allied player can easily predict this and make suicidal attacks with the French, because the consequences are minor. He will either bleed the Germans or force them to reject the Armistice. Keep in mind that the Germans cannot do everything at the same time, either. They must ignore the Balkans/Egypt/Norway/whatever if they want to perform a Sea Lion.
The Axis player can also keep subs near Casablanca to interdict transports sailing with UK units.
I think we just need to playtest and see what will happen. I therefore encourage some Axis players to reject the armistice offer and see how you can deal with the Free French.
I'm doing that in one of my games right now. Too early to tell what the outcome will be. However, the Allied player essentially forced me to accept high losses (he used Morris-like strategy everywhere) or reject the Armistice. British losses are high, obviously, but this is unavoidable. Remember Morris' escapades pre-2.1? This is sth similar, but on a slightly smaller scale and with the changes made in 2.1 in mind.