As a (somewhat proud) European who loves pure science and space, I'm sorry to say I think your points are too accurate, put another way: is a waste of government's money when most EU governments are drowning in debt and really can't afford it.
Europe would be much better served by encouraging the kind of entrepreneurial space industry represented by SpaceX than handing more money to the European aerospace/military pork cartel of EADS and friends.
"drowning in debt"? Nothing changed from ten years ago, except for Greece. And everybody knew that, when they entered the Euro, they were not ready and that some major crisis would happen down the road. Now they have to transform their society into a firstworld country, that's hard, but long-term very beneficial. All going well, so far.
But I agree that the EU space program should follow the US example of privatizing standard stuff. But in Europe we have the problem that nations are still stupidly putting their national interests over the common European interest. EADS is one result of that sort of behavior. Imagin the European version of SpaceX was for example French: all other large countries, especially the UK and Germany, would want production facilities too. A innovative small company would die soon, crushed by political pressure.
Europe would be much better served by encouraging the kind of entrepreneurial space industry represented by SpaceX than handing more money to the European aerospace/military pork cartel of EADS and friends.