Empee

Encyclopedia of World Geography seems to think it is a continent. http://books.google.com/books?id=DJgnebGbAB8C&pg=PA215&redir_esc=y#v=onepage&q&f=false Guam is another great idea for a real world island with moderate urban build up, military installations, and open terrain.

Yeah except Australia is a continent, not an island. BI might pick a smaller island, but Okinawa would be a prime location for an expansion. But they could also forgo using an actual island and use a fake one.

Okinawa is the most logical choice in my opinion. It is relatively the size of Altis, it has multiple military bases. It has a few large cities, it has mountains, it has forests/jungles, and it is in the Pacific. Now if they introduce Okinawa, BI will have to implement the BLUFOR as the USMC and OPFOR as China/Russia/Korea. But all signs to me are pointing towards Okinawa.