If the allies lost WWI, there would almost certainly have been something like fascism or communism or military dictatorship in Italy, and probably in France.
And, wait a minute, there was already Bolshevism in Russia by 1917, would it have gone away like it never happened?
Rising East European nationalism was largely a result of Wilson's pushing for new countries in the region.
That wouldn't have happened had Germany won, and in any case, the rising wave of Eastern European nationalism after WWI in our own timeline did nothing to weaken Germany's grasp on the region.
If we hadn't interfered, Germany would have quite a grip on Europe and somebody like Mike Konrad would be writing a very similar article attacking Wilson for standing by and doing nothing.
I'm not saying intervention was the right choice, but you can never know whether or not the other choice would have been worse or as bad -- and even if it the other way couldn't possibly have been as bad as what happened in our own history, nobody living in that alternative universe would know that.
And how does that compare with the suicidal "democracy" they have there now?