I'd like to hear from others in the EU who have gone this route. What are the pros, what are the cons, and is it possible to base yourself in another EU country and conduct all your business through this?
I believe Estonia is unique in offering this around the world. Once they get the banking up and running then its getting interesting. They have been considering allowing English in courts/dealing with government as well, but I don't think this has materialized yet as a law.
I don't know much about it, but the answer to your last question definitely seems to be yes.