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Islands are good for luring in the Japanese navy and bombing/engaging them in advantageous positions.
Spain/Turkey aren't terrible either but more boring in their naval matchups imo.
Sweden does a surprisingly good job of going toe-to-toe with Britain as early as 1940.
Formable nations generally speaking are "OP" because you take the land from like 4 countries and make one giant land where you have cores on everything.
The best minor nations are the ones that can become something wonderful from a humble beginning. An example is Gran Colombia - which is a formable nation. If you don't know what that is see the link below.
https://hoi4.paradoxwikis.com/Formable_nations#Gran_Colombia
Why is this nation good?
Any nation in South America that joins the war is immediately good. Why? Well for one it makes a landing pad for a country to be able to go through Mexico into the US via land borders. If you've never tried it : invading the USA is not easy as a fascist because of the Navy problem.
Most of the terrain is mountain, hills and jungle. This means someone that can afford to spam tanks can't use their best asset against you because the terrain sucks for it.
You can take Brazil and have decent rubber and you already have nice oil income from Venezuela. There is even a nice reserve of airplane resources owned by FRA or ENG (cant remember).
You can even get an achievement for forming it as Columbia. Sadly you can't get the achievement when playing one of the other nations that can form Gran Columbia.
Netherlands + Indonesia as well.
Canada can if you will try.
Mexico theoretically if you wil "go shopping".
Gran Colombia formable nation.
Formable Scandinavia.
Formable Baltics
Lol , on the other hand, Hungary is probably the only landlocked country with Admiral as a head of the country :D
Austria Hungary actually can make a grand navy. You can beat Germany before WWII and make WWII be soviets vs allies. While they are busy you can stroll right into soviet territory and take everything for yourself.
Most of the time the AI won't push for land if they will not be given control. Push from Romania's former borders and cut off any expansion that could be made towards soviet lands from East Poland. Push to the Urals and it's game over. The trick is to not give the allies any type of peace treaty or military access. This will leave only you with long term direct access to fight the soviets so you will end up with 90% of the warscore.