I think we’d be speaking Russian. If the US and GB folded in Europe and as a result Germany and Russia would have become the world’s two biggest superpowers, the Soviets and Germans probably would have fought a real WWWIII instead of a Cold War and Russia probably would have won.
Of course, don’t forget how the media would have reported the “setbacks” in the Pacific - Iwo Jima, Okinawa, Tarawa, et al. However, had we folded in the Pacific, I don’t think Japan would have emerged as a superpower like Germany would have because Japan, unlike Germany and Russia, probably would have not been able to develop Atomic weapons. I think Mother Russia would have eventually done Japan in before the hypothetical WWIII with Germany anyway.
In a simple German Russian grudge match. Germany would have won the belt easily, However if the Germans still had Italy as an ally it would definitely have been a toss-up.
Those weren't setbacks, but they were very costly victories. But you're right, the MSM would have deemed them defeats, just like they termed the decimation of the Viet Cong and defeat of the NVA during Tet '68 a defeat for the US.
And you know, IMHO, one of the main reasons they didn't do that then, is that we were allied, although not in the Pacific Theater, with Uncle Joe Stalin, hero to many in that day's MSM, both broadcast and print.
You forgot that the Soviets had a helluva lot of Lend-Lease support. Without the additional output of the US, the Soviets would have problems.