The primary goal of the European “Federation” is not to create a “better” super-state, but to prevent war amongst the states by creating a common economic dependence and by aligning mutual interests.
Yeah... this is sort of a dangerous idea, constant but "restrained" (like in "let's be gentlemen and don't kill millions or hundreds-of-thousands, instead mostly keep it up to tens-of-thousands") interstate conflict was probably the catalyst for the rapid advances of European culture and civilization. EU needs to catalyze internal economic competition/warfare as a replacement of violent conflict imo, we're too addicted to some kind of violence to just go dry on it, so we need to move most of this violence into economy, culture, education etc.
While I find the way you expressed this disgusting (the "restrained" aspect of what you refer to only extended to the aristocracy, the common folk was treated about as well as cattle on average, sometimes better sometimes worse), the little kernel of good idea in this comment is exactly what confederations of states like the EU enable: link the economies, make freedom of movement possible, break down all obstacles to market competition while preserving regional identities and diversity.
Note that empires do NOT do this, as they need to force stability,unity and legitimacy from the top, while confederations of democratic states get their legitimacy from the bottom (if designed well. There is lots of improvement left in the road towards democratization of the EU).