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In this Hamburg run, I did not colonize at all. I just conquered some small nations in my direct vicinity and joined the British market (by joining their Power Bloc which had the principle "Market Unification") to get access to all the necessary ressources, as well as protection against Prussian expansion. I also put Greener Grass decrees on both of my states ("Elbe" and "Hanover") in order to get immigrants from all over the Commonwealth. This fueled my economy to the point of becoming a Great Power with a population of 20 million and the highest GDP per capita in the world.
https://steamcommunity.com/sharedfiles/filedetails/?id=3445374623
Besides, I received my Egalitarian Society achievement during this run, albeit with the help of the Unofficial 1.8.6 patch from the Steam workshop, since the achievement is still bugged for nations starting with the Slavery Banned Law. (Take this is a PSA, if you want.)
Apart from little flaws like that: Can absolutely recommend!
I think what you are talking about is a Power Bloc member getting so much prestige that he can challenge Power Bloc leadership. It is natural for the current leader to take measures to defend his position. The whole concept of my campaign here was to remain small though, and to not take colonial territory any other European power might be interested in. If you plan on becoming #1, you would probably create your own bloc rather than joining someone else's.
https://steamcommunity.com/app/529340/discussions/0/828204733286129883/
Also, you don't stop naval invasions with ships effectively. You stop them with armies stationed in the HQ where the landing happens, with a general in "Adamant defence" stance. More often than not, the invader is allied with your neighbours who hate you, and then, they have a land front to send their armies to without a naval invasion in the first place.