So long as the base doesn't blow up and blast the moon into deep space, then I think it's a grand idea. The low gravety environment makes a perfect jumping off point for more interesting missions, and we'd need to employ lots of people in fascinating if rather dangerous jobs to make it happen.
All we need is a more green method of getting stuff there; especially heavy construction materials. I haven't figured out how to bend space and defy gravity yet, so perhaps a very long rail gun would be a rather cool place to start. It would have to be placed on the equator, and there's plenty of sun there. It should be possible to build hydrogen powered passenger transports, so they'd be solar powered too - although we'd lose some water from the Earth with every launch; most of it would rain down but not all. On the moon, there's even more sun so power up there should be limitless.
I haven't thought about this since I was a kid

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