I quite agree although I think your BB was 26 before you DoWed and annexed the Papal States for an extra 10 BB points 
Actually giving Milan to France would have reduced your BB by 1 point.
Basically, you are correct in saying that, you have ambassadors queuing at your door waiting for you to be involved in a war before handing their own DoW. If you're not ready for a war then stay out of any for the time being and keep relations with your allies fairly strong if you can afford it. Otherwise, ensure you have a suitable troop build up so that you are ready to wage war on several fronts.
Another tip is to concentrate on a few enemies at a time, get them out of the war and then go to another. It's a lot more effective than fighting on all fronts unless the fronts are a long way from each other.
I say you should continue.
Actually giving Milan to France would have reduced your BB by 1 point.Basically, you are correct in saying that, you have ambassadors queuing at your door waiting for you to be involved in a war before handing their own DoW. If you're not ready for a war then stay out of any for the time being and keep relations with your allies fairly strong if you can afford it. Otherwise, ensure you have a suitable troop build up so that you are ready to wage war on several fronts.
Another tip is to concentrate on a few enemies at a time, get them out of the war and then go to another. It's a lot more effective than fighting on all fronts unless the fronts are a long way from each other.
I say you should continue.