sPzAbt653, You make a good point that not allowing Amphibs in Loops could really limit the Allies' ability to bounce back from early mistakes--an undesirable feature in a game. Still it feels pretty gimmicky for an Allied amphibious armada to appear out of nowhere and launch a successful invasion in the Red Sea after traveling thousands of miles around the Cape, possibly from the East Coast of the US. No less gimmicky, IMO, than a German Amphib unit going from Norway to Iceland.
I agree that Sealion is not necessary to win. I've won as the Axis without it, and been beaten as the Allies without it. In fact, it can be counterproductive for the Axis, even if successful, thanks to the clever game-balancing that the designers have worked in
In an earlier post, you made a good point that in hindsight it's obvious that Sealion in 1940 was horribly risky, but that the British couldn't be sure of that at the time. How to simulate that in historical game? I think it has to remain possible. Without at least the possibility of Sealion at some point before Russia enters the war, the game swings sharply in favor of the Allies, barring exceptionally good Axis play or exceptionally poor Allied play. It might be closer to historical possibilities (opinions vary on that point), but it will definitely be a much less interesting game from the Axis POV.
Perhaps another, simpler solution to the frustrations some have felt when faced with early Axis amphibious capabilities would be to limit the number of research chits that can be invested in Amphip warfare to 1. That way, the Germans could still try for Sealion, but it would be significantly harder for them to be sure of doing it successfully before late 1940.
I also agree that the Channel can be too easy for the Germans to dominate, though I have found MTBs to be a very valuable asset in making it more costly for the Germans to park subs in the Channel. Some kind of minefield rule would be good (there was one in SC2 Assault on Communism, as I recall).
But if you are advocating for structural changes that make Sealion virtually impossible, then we'll have to agree to disagree.