*The irony is that this is what Putin has been worrying about - a large EU block, with an 'EU army' and the ability to collectively deny transit/trade as well as impose financial sanctions.
If you look at it outside of this situation (in which it seems like a great thing, being used to defeat The Baddie), then it is kind of alarming - that is a lot of power.*
Yes, it is a lot of power. But if the EU/NATO did not exist, there would still be a loose trade agreement and alliances between states to avoid annexation - along with a lot more squabbles and minor wars as has been the case throughout European history. Since the second world war, we have see the trend of coherent superpower blocks - China, USA, Russia and India. Why not Europe? Why are the individual countries more special than (say) Texas or Maharashta? Are you condemning the USA for having an army and a reserve currency?
The days of the British Empire are over. So is the idea of solo standards or go-it-alone diplomacy in an urban, interconnected world. Like it or not, the blocks with the the critical mass of people, money and resources behind them set the agenda. As we see now.