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I think that the Britannic Empire is a perfectly sound idea. It is historical to some extent, furthermore it was the ultimate goal of pretty much all invaders.
 
It just looks wrong starting the game off in 1066 and finding de jure Empires where none should exsist, breaks the immersion a bit.

I don't mind them as de jure. If, say, I became Emperor of All Spain but there was still a bit of Galicia independent somehow, it's pretty clear that Galicia would fall under the purview of Spain and that if I change any laws in the Spanish Empire, Galicia ought to be notified because this does potentially impact them.