In CS, with the Kaiser still on power, Hilter was just the Chancellor and leader of a strong political party rather than the leader of Germany. The Nazi's will certainly have some strong influence, particularly in France and Italy (As they did in our own world before WWII) and some implied influence in the ISA (Again, just as they did in our world in that region prior to WWII). But unless Hitler is used as a plot device, he is largely unimportant as long as the Kaiser Wilhelm II remains the Emperor of "The Germanies" (Plural intended) and Prussia. In Crimson Skies, he politically survived the ineffective German Revolution of 1918 which was nearly a non-event (unlike our world) and remained in power, though politically forced to accept Hitler as Chancellor, he remains the true power of the nation. The Kaiser is related to most European and Russian royalty so he will have loyalties to them.
It does add an interesting twist to things as the Kaiser will be actively or even aggressively oppose to the reds to support the Imperial Russians. To my thinking, the second hottest front in WWII will be Russia and Alaska after the front in northern Mexico, and I see Germany actively fighting in both areas. Unlike our world, Germany will not be fighting in her own front yard, in that respect she will be more like the US in our world, two foreign fronts without any real homeland threat, she will be more financially and industrially stable as a result.
I see the third CS WWII front in the Pacific and Asia against Imperial Japan. The British and French will be facing the Japanese and looking for any allies they can find in that struggle to defend their interests there.