WI: Duchy of Veneto?

What if the Holy league followed up on their victory at the battle of La Motta during the third Italian war? What would have been the ramifications of taking advantage of Venice's blunder?
Considering Maximilian and Ferdinand wanted to install a relative in the Duchy of Milan rather than restore the Sforza, who would they have made Duke of Veneto?
What would be the ramifications of a Duchy of Veneto?
What would happen to Venice's Istrian, Dalmatian and the various territories in the eastern Mediterranean? Northern Italy would be firm in the hands of the Habsburgs and their allies. If there's spare Habsburgs laying around, to which branch of the Habsburgs would the Duchy of Veneto go to? The Austrian Habsburgs or the Spanish ones? If it were to go to the Spanish Habsburgs, would Charles V still partition his empire the way he did IOTL?
Would Milan still fall to France with a Habsburg Veneto?
What would the territories formerly belonging to the Republic of Venice coming back under imperial jurisdiction mean for the HRE?
What would this mean for Ottoman-Habsburg wars?

Italy 1513.png

edited pic to help visualize what it could like
AIUI no power really wanted anyone to have the Venetian territory (except the Venetians). That was partially why the Republic lasted as long as it did.
Would it even been kept intact? Or would Brescia and Bergamo be given to Milan and the Duchy of Friuli split off and restored.
Could the Duchy retain the instititutions of the Venetian Republic?
such as a senate? Elected leader? Given that around this time, Maximilian signed a treaty with the Tiroleans around this time that remained in force until Max Joseph of Bavaria overturned it (sparking the Tirolean revolt) it's probably not "impossible". The question is "why"
As for the other Venetian possessions, Istria is certainly interesting for Austria. Dalmatia likewise will be something Hungary will be interested in. Other Eastern Mediterranean possessions most likely will be split between the Ottomans and Spain (under the Crown of Aragon).