A simple suggestion: I've noticed a much better balance between tech levels (while retaining the distinct playstyles focused on either survivability and group tactics or mobility and kiting) when raising the effectiveness of armor modifiers in the settings file. High tech ships are still more powerful than low tech ones, but they now require a higher degree of skill to unlock their full potential as they cannot slug it out and expect to win consistently with the more heavily armored classic domain designs.
Basically, the expensive and high tech aurora is still more than a match for the old, battle tested dominator, but the dominator is no longer outclassed in every respect, and is still a viable choice for players wanting a less micromanagement heavy style of gameplay. It's armor makes it more forgiving of mistakes, and the skill floor is lower, but the skill ceiling and the ship's maximum potential is lower than the endgame, faster, and more lightly armored counterparts.
While this would somewhat tip the balance of large and small vessels in favor of the larger craft, I do not see this as a bad thing. The small ships would still have their own uses and distinct roles, but now serve more to support and supplement the larger ships in the fleet, and would, if anything, increase the epicness of long drawn out battles between fleets of different sizes. Torpedo runs with a destroyer or an antimatter blaster strike with a phase frigate would matter more now than they ever would before, and further helps to distinguish between heavy brawling/ escort frigates with high durability and endurance, and fast strike/ interceptor frigates with more focus on mobility and skirmishing.
"maxArmorDamageReduction":0.90,
"minArmorFraction":0.50,
I changed these values from 0.85 and 0.05 (vanilla) respectively, and have also found that it increases the reliance on hard hitting, alpha strike based high explosive weapons for dealing with armored targets. With these changes, a cruiser optimally geared for hunting down destroyers is going to struggle to damage the larger, more imposing battleships whose armor will greatly reduce the effectiveness of the cruiser's rapid fire, energy/ kinetic based weaponry. It also renders the strategic raising and lowering of shields on flux and armor heavy ships depending on the current threat a viable tactic again, giving classic domain designs such as the enforcer, dominator, legion and onslaught another potential strategy. Armor tanking is a fun playstyle that can supplement other strategies, but is never optimal compared to kiting/ flux war shield tanking with more advanced, faster ships armed with long range energy weapons.
Simply put: make armor great again.