I think pirates should be split up or reworked, too.
It simply doesn't make sense that the same guys who raid planets and trade convoys are the same ppl that run big, sector-wide-known space stations that every military would just need to walk over and blast to smithereens, and are also the same guys that venture out into deep space to salvage ruins and ancient debris fields.
The ludic path f.e. is a good start for a ideology-driven, planet raiding terrorist faction, preying on the weak for profit, to fund their war against heretics. They are basically Cesars Legion in Space.
Pirates as a Faction however shouldn't be even in the game. Hear me out on this:
Mercenary fleets should just become an opportunistic wildcard, turning hostile when they see a fighting chance against you, and / or the potential profit you're hauling makes it too god of an opportunity to ignore. They also wouldn't want to straight attack you, since that easily would sour their profits with refits and repairs, but rather try to intimidate you and offering you to pay your way out of the situation. Who knows, they might even tug their tail between their legs, if you tell them "No" with some REALLY big barrels pointing their direction.
The rest of the time they just pose as neutral, law abiding mercs for hire, even offering you to hire them as escorts for yourself or your colonies. How you interact with them should only affect your reputation with the captain of that fleet. Got some favor with him? Don't get attacked by his fleet. If he likes your nose, he might offer his escort services for a discount.
Core Pirate stations should be handed over to the neutral Faction. Free ports that attract smugglers, mercs, and ludic path goons, which all come with the accompanying trouble and opportunities they offer. Attack these stations, and *** off everyone that likes free, unregulated trade.
Ludic path stations should still spawn and try to raid your colonies if they hate your guts, but spawning merc stations should just pop up, 1 station per stellar cluster over time, if there is a colony nearby, and make your life more difficult and/or interesting by the traffic and "customers" they attract.
Last but not least the 100% of the time hostile Scavangers. Corpse pickers that spend most of their time in some deep space debris field, or right off the sides of some mayor battles, to scrap whatever leftovers and escape pods they can find. If they see you, you're either to big to swallow, or up next on the platter. Usually spotted as small scraping fleets, that will occasionally stalk you and call on more / bigger fleets to overwhelm you, to put your head on pikes as trophies for their hulls. They don't trade, they don't negotiate. Either they flee, stalk, or attack.
Anyways, these a re my 2 cents on the matter.
Maybe also a good theme for a mod?