Honestly, one part of Italy absolutely loving this and one part hating it is a fun predicament. I love Italy more than anything, beefing with them over stupid sh* is iconic honestly, especially since it seems to be mostly right wing people who are genuinely crying about it in Italy and whose opinions I will never take seriously. It's so silly.
I still don't see it as mocking Italians or Eurovision at all, he's made outwardly stupid songs his whole life and it's all just for the meme. Having Italian stereotypes in the song as a 'funny' may be childish for some, but if he's mocking anyone it is definitely the businessman who takes himself way too seriously and loves to flex about it persona by turning it into an absurdist concept, that is the main caricature here, and that has nothing to do with Italy lol, the Italian theme just adds to the absurdism as an exaggerated aesthetic choice while making the song stand out.