There were many people between Louis the Younger of Italy and Otto the Great that called themselves emperor while just controlling north Italy.
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Not while coexisting with the HRE. Because Italy is an integral part of the foundations of the HRE. It should not be something you can just leave and ignore. Once the HRE is formed, as opposed to just Germania, northern Italy should become part of its de jure.
Italy had more autonomy than the rest of the empire because of the alps making it more difficult to govern effectively. After Fredrick Barbarossa was unsuccessful in asserting imperial authority by force, northern Italy became de facto independent. Plus, independence factions don't always just look at de jure setup. Low cultural acceptance can impact factions that attempt to break away.
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Idea: Germany or Italy could be more rebellious based on where your capital is. If you set up in Germany, Italy gets rebellious, and vice versa.