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With naval cruise the Germans can slip all their subs and surface vessels through the English Channel on turn one and start raiding everywhere, North Atlantic, South Atlantic , Mediterranean and elsewhere. How does one not run around with the Royal Navy like a chicken with his head cut off trying to stop it? And is it too dangerous to send the French surface fleet out to assist?

You know where the Germans are going to get anything done. Start patrolling those convoy lanes with some destroyers and light cruisers with battleships and carriers as back-up. When you find something with the lighter ships or air patrols then pounce with the carriers and the heavy ships. You have numbers on your side and the Germans are further from their bases for repair. Always leave a few ships in the North Sea to beat up on anyone trying to sneak back home or join the party. If anything, nailing new German ships trying to get into the Atlantic is easier in this game as there aren't as many sea hexes to guard in as SC War in Europe.

If Germans do go to the Mediterranean early in the game, they won't last long in that cul-de-sac as they can't dock in neutral Italy and in such a narrow sea there aren't that many hiding places. Yes, definitely use before you lose the French ships. Preferably before the Germans take Paris. Since France usually gets conquered at some point, you could say to a certain degree they're expendable.