Doesn't strike me as bad, the alternative is for Europe to continue its slide into irrelevance (nobody cares about any of the small country individually, only united does it have some leverage against US/China/Russia)
There is a huge gap between an united front on key issues when deemed in mutual interest and this great bulldozing of national sovereignty and identities. I also think that using "keeping up with the US/China" to justify it is a fallacious argument: The integration policy comes first and everything else are a posteriori arguments to justify it.
Can you tell me when was it better than nowadays ? The EU is far from perfect, but still I'm glad to be born after its creation than before. Because my grandparents were born before and they know what it was to be at war.