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Yes, but for another reasons.

Furthermore, they were far right dictatorships, not totalitarian fascist ones. Marcello Caetano in the portuguese case led the "Primavera Marcelista" that you know about, lifting the obligation of the portuguese youth and creating a lot of personal freedoms that allowed the openness that defeated the new state.

Franco made similar things from 1947 on, by 1968 the Francoist regime was wide open and he already had appointed Juan Carlos as his sucessor and everyone expected it to open after it's death, even Franco himself.

Sorry for the late reply but you're really overestimating school indoctrination's success. Also, a neutral Fascist Italy would be forced to liberalize itself, after World War II, like Francoist Spain was.

I don't think I'm overestimating it; north korea is a example of a totalitarian state with school indocrination. Furthermore there are more ways to indocrinate that these states use, mass media, populism, succesfully anchieving political goals, etc. Fascist italy would need to liberalize, true, but there is a thing:

By staying neutral they would prevent fascism being scrutinized by the public, and so they would be able to reform their system, not abandon him. Francoist Spain was openly fascist until 1947, but then Franco reformed into a normal reactionary right wing dictatorship. On this universe he wouldn't need to do it, and also there would be the possibility of Spain and Portugal to drift towards Italy and create a bloc.

North Korea is an extreme case and no such thing could happen in Europe. Fascist Italy would be forced to liberalize itself over the post-war years and that would make the regime unsustainable in the long run, like in Spain and Portugal.