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Forming Ireland itself is also a challenge as you need to get Meath, which is held by England. However, this is very doable if you choose a moment when England's armies are being destroyed by France in the 100 year's war before jumping. You will have to keep an eye out on attempted amphibious invasions by England though, and get armies to the provinces they are trying to land on before they land. This gives a sizable defensive advantage.
Whatever you do I'd suggest being a rival of England ASAP, this will give you much higher relation with countries that also rival england (scotland, france, spain, maybe denmark, burgundy) try to get these countries to like you and use them as allies. England won't be so quick to attack you if spain and france are your allies, buying you valueable time.
Honestly I've had more trouble just dealing with Castile later on in the game. Now I'm mid 18th century and I'm ranked 32nd ish, through diplomacy and administration.
If you focus on trade, ships and colonies then you should do grand, as long as you maintain an military alliance with france or another great power and constantly improve your situation with England.
You'll probably have to wait for a defensive war but it will happen soon or later.
As for colonizing in North America. Works fine, just can't move my capital. The Reformation is killing me however. Having a few troops overseas and fighting of zealot rebels on home soil is wrecking my economy into bankruptcy three times in a row now. Thinking about not building any buildings, just saving up cash, until the Counter-Reformation hits me.
But to answer the OP's question. Yeah, it's fun to play, but definately a challenge.
:D