It happens ALL the time!! I ran a children's theatre, and we had so many kids who had to have their 2 front teeth pulled because of injury. Baby teeth are much more fragile than adult teeth.
Yes, unless the parent opts for a "bridge", the child will be toothless until the adult teeth come in. Every parent who had a child to whom this was done, was told that it does not create any long-term speech impediments, and these kids did seem to speak just fine when their teeth finally came in.
As far as the process....dentists say it is an easy extraction, and none of the little ones I spoke to ever told any horror-stories about it. I think it was usually much more upsetting to the parents.