It's a fun experience overall, even if you go in a "PvE mode" since AE and the end game crisis can still be a challenge.
I would recommend the following setting: elliptic map, player clustered start, hyperdrive only, no advance AI starting close, always fast speed, AI aggressiveness at high. If you have Utopia, force spawning a few Devouring swarms/Fanatical Purifier is a good way to spice up the mid game. The rest is up to you, but I would avoid map larger than medium or increasing the number of habitable planets since it can really mess up the late game crisis balance.
The only issue I have with co-op play, in particular if your friend is new to the game, is that it's harder read events and the situation log at fast speed reducing the immersion overall.
