Yes, yes, yes and yes.
Some things to keep in mind with fantasia settings, though.
1) Colonists and merchants will be 6 a year for every country in the game, reagardless. There will be no increase in the number of merchants you can get based on CoTs, monopolies, etc.
2) Since it is fantasia settings, all armies and fleets can explore. If they dont have a conquistador or explorer, they just suffer alot of attrition. This is regardless of technology level.
3) I suggest using Monteczuma's Scenario generator. It is a big help. Also, you can use any number of nations and tags, but because it is fantasia rules, you might find the world explored within 100 years. With every nation exploring and swapping maps, there is nowhere to hide by 1650.
4) Under fantasia settings, colonization is generally cheaper and easier. The provinces which would normally have negative population growth may end up with a decent amount of population growth under fantasia rules.
5) With fantasia rules, countries can make non-historical religion changes. This wont be a problem, as the AI wont do them non-historical changes. But if you play the papacy, you could convert to Islam or even heathenism.
Just some things to keep in mind.