one way to offset the LO's would be to give them some serious drawbacks, like.
-does not attack X faction
-does not go farther than X light years from the Core
-does not go near the Core
-only flies a single ship size( only frigates )
-needs a constant supply of hard drugs/luxury goods
-ship they fly gets +100% maintenance cost coz the LO's is an obsessive maintenance type
-needs to kill a pirate/path base every 3 months, or their CR starts to decline at 10%/month
-does not fly in a fleet bigger than 10 ships
etc.
aaaaand the twist is that you can cure them of their mental problems by doing ANOTHER QUEST.(SPEECH SKILL WHEN?
)
having a commission if applicable, and having a high reputation with that faction.
And perhaps if you no longer meet those requirements, some of these legends will leave you? I'm sure that the Hegemony loyalist who agreed to serve in my fleet would be a little miffed about that one time I ordered him to raid Chicomoztoc.
or as the bodies hit the floor they'll laughing maniacally and saying "WHO'S LAUGHING NOW???!?!?! AHAHHAHAHAHA" and you get a one time +100% rare loot raid bonus because you knew where the goodies were.