I don't quite understand how this view of things is possible.
From the very start, when the Coal and Steel Community was created in 1952, loss of national sovereignty was, to a certain degree, built into the system. The primary goal of European cooperation was to take away the ability of European nations to go to war with one another. Also remember the "de fact solidarity" that Robert Schuman spoke of in his famous declaration in 1950: With all the horrors of WW2 fresh in mind, nobody could expect the people of Europe to show solidarity for another, so the framework of Europe must be set up to generate a "de facto solidarity". The whole system should be set up in such a way that the people of Europe cannot _not_ show solidarity.
We learned this in school and it seems to be generally accepted by the general populace, at least in the "old" continental Western Europe. If you ask older Germans or French about European integration, they will talk about avoiding war, not about the single market.
The only possible explanation I can come up with for the sentiment that the EU was "all about the single market" is that UK voters were horribly misled by their press and politicians at the time of EU accession. Is this plausible?
On a side note: I admit that what I wrote about hating Europe was harsh, but we (i.e., me and many others I've spoken to) do feel genuinely betrayed.