I simply do not think the majority of the UK population would ever sign off on the loss of British Soverignty that would entail.
I think you're right, and it's this short sightedness that is hastening our decline.
I can see the benefits for European Integration along the lines (although not setup) of the United States, but I don't think we will see it happen in our lifetimes, the ideological and historical barriers are simply too great.
I think it's already happening, what do you think about Eurocorps? I was quite surprised to read that they've been up and running for some time now, less surprised to find out that the UK isn't involved, which of course means we have no say in shaping the future of the inevitable.