As has been previously said, that's exactly how I play when I have a late start as Britain. First order of business is to become the leader of the league war, let everyone destroy themselves whilst causing a little havoc in the Americas. Debilitate Spain's navy, and free Brandenburg from the Commonwealth vassalship. Then if you can get an alliance with Russia (they almost always rival Spain in a late start), start to pick away at their European holdings (especially the Portugal PU). From there it's a case of picking fights with Spain, France, and the Ottomans to prevent any major land grabs. At the same time you spread into India as IRL and build your power base.
Clearly a different game when playing multiplayer, but provided you play it fast and loose with your alliances, I can't see why the same strategy can't be effective, without ever really comitting your troops to heavy continental war.