1) The only way Austria is getting Lombardy back is if it's willing to fight France again. In fact, chances are Napoleon III might intervene anyway, either to force the Austrians out of Venetia (he was determined to expel them from the Italian Peninsula) or to grab a share of the Prussian Rhineland. Or maybe even to help Prussia.
2) Denmark getting back Holstein is a big no-no. The province offers the Austrians access to northern Germany, the Danes didn't really want it (their focus was on Schleswig) and giving it to them is a surefire way for Austria to insult German national feeling. Hell, even giving the Danes Schleswig is iffy.
3) Unified Hesse, Thuringia and Mecklenburg make no sense.
4) Luxembourg was Dutch. How did the Bavarians get it?
1) After Napoleon I Austria gained Venice and Lombardy 2) In sense the Danes did want Holstein look up duchy of Holstein 3) There not unified using your logic that means Prussia Belgium Italy and Baden are united see were I'm going? 4) Same sense for 3)
1) And in 1859 it lost Lombardy. This map requires that it get it back.
2) Denmark did not want Holstein. There were very few Danes there. Denmark, on the contrary, wanted to separate Schleswig from Holstein, and it was precisely this that provided a casus belli for the 1864 war. My other objections remains: Austria would lose territory and offend even the most moderate of German nationalists by giving up Holstein.
3) No, I don't. I don't have any idea what the hell you're saying, and not just because you refuse to use punctuation. Prussia, Belgium, Italy, and Baden were *countries*. On the eve of the Austro-Prussian War, there were 2 or 3 countries making up the *region* of Hesse (Hesse-Darmstadt, Hesse-Kassel and Nassau, depending on whether or not you want to count it), 8 countries making up the *region* of Thuringia (Reuss-Gera, Reuss-Greiz, Saxe-Altenburg, Saxe-Coburg-Gotha, Saxe-Meiningen, Saxe-Weimar-Eisenach, Schwarzburg-Rudolstadt, and Schwarzburg-Sondershausen), and 2 countries making up the *region* of Mecklenburg (Mecklenburg-Schwerin and Mecklenburg-Strelitz).
4) Since your answer to 3) made no sense, I ask again: How did Bavaria acquire Luxembourg, which in 1866 belonged to the Netherlands?
You could use a larger color palette and write "Small States" where appropriate. When you bother to depict Liechtenstein and San Marino on your map, it's normal to assume the other shapes are also countries.
Oh, and another thing: your Montenegro has a coastline, which it would not obtain until 1878.
Maybe if Austria manages to form a German Empire (or Empire of Germany/of the German), Denmark would be one of the Empire's member states and therefore somehow "controled" by Austria, but could also gain some privileges compared to the other smaller states (more delegates in the Parliament, more autonomous than the other states...).
It also could at least help to explain Austria's victory over Prussia: When Prussian troops were fighting in the South against Austria, Denmark attacked from the exposed north because this "you-get-Schleswig/Holstein-back-if.you-help-us-and-become-a-rather-independent-part-of-our-empire"-thing was negotiated before the war. Just as a quick idea^^
Oh and by the way: While it looks REALLY good, the fact that the Hessian and Thuringian states merged and Saxony gained Altmark bother me. I mean all three of the Hessian states were pro-Austria and there is just no reason to unite them if they still have their various ruling houses. The situation is also similiar in Thuringia. In case of Saxony gaining Altmark it's just that it is traditionally part of Berlin's sphere and despite the fact that it was added to the Province of Saxony Dresden has no reason to annex it.
about that saxony thing: the Altmark really doesn't belong to Saxony. however, Berlin never had any reason (by your definition) to annex nothern saxony (which went all the way to Bad Belzig) and did it anyway, so why shouldn't it happen the other way around?
anyway, saxony should have definitely regained Lusatia in my opinion.
Also Bismarck's dying earlier wouldn't have had that much of an impact. A minor victory, with some border adjustments in Silesia in favor for Vienna and preserving independence of Hesse-Kassel, Nassau and Hannover (not to mention Saxony, which suprisingly survived IOTL), sure. But for getting such a drastic dismembering of Prussia... That would require a miracle.