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And it wouldn't have lengthened his defensive line as it would've removed the entire Med, which is were Germany was ultimately first attacked by the Allies (in North Africa, and then through the soft underbelly of Italy!).
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Italy was anything but a "soft underbelly", anyone can review the history of the Italian campaign to put that myth to rest. A key element of strategy is not surrendering the initiative to ones opponents and by diving into North Africa to save Mussolini's Empire, Hitler ensured that the British and not the Germans would drive the combat agenda in that theatre. Once German arms were committed to the Med, they became a reactive force, responding to the enemy in a place chosen by the enemy. That's usually a recipe for disaster and so it was for Germany. Good thing too.
Sure Rommel won a series of sometimes brilliant battles but all were just hollow tactical victories. Driving to the oilfields of Persia or to British India through the Middle East was a pipe-dream, any more than casual examination of the geography, space and time issues just shout out the problems. The Suez Canal was entirely irrelevant after Italy's declaration of war June 10th 1940 since that event ended British commercial traffic through the Med entirely. After that it was useful only as a symbol and then only to the British. Capture Suez and what happens? The RN submarine flotilla in Aden chokes off the Red Sea and the Canal cannot even help the Italians save their colonies in East Africa. Ignore it and the strategic situation is unchanged and you free up resources for the main enemy - Stalin.
Germans fighting in Africa did far more for the Allied cause than even a best case result could have helped the Nazi stategic situation. Do not forget that the Bulgarians with a handful of German and Austrian's kept 250,000 Allied soldiers penned up in Salonika from 1915-18. Another "soft underbelly " scheme that did not survive the realities of geography, climate or infrastucture. The ability of the Wehrmacht to conquer Spain is not in question. The wisdom any German action in the Med is like using a hose to water the kitchen plants while the living room burns.
The Allies might have taken the fight to German-held Europe through Italy first and early but the German forces kept them south of Alps and away from vital ground until the bitter end. Doesn't sound like a very soft underbelly at all.
Good Hunting