Just bought it :(

Yeah, currently the pirates are broken. Turn them off in the option screen when you start a new game.

I still seem to be the only person here who likes having the pirates on.

I typed up my strategy as regards pirates in this post: https://forums.sinsofasolarempire.com/386950

The strategy works for me. The pirates work for me. I don't usually fight them until near end-game, and then I do it just for the sake of having another planet or if I don't want to have to think about the pirate timer. Remember, if the sword is by someone's name, that means the pirates are still after them. 

I usually ignore the missions in diplomacy too, even when I'm allied. I try to pick someone who likes me for smacking around one of their enemies if I can, research the tech to make bribes more effective, and use that to get a good temporary boost to get a ceasefire so I can send envoys over. If you can get a ceasefire and a few envoys, it's just a matter of time from there. Pacts are sweet!

Your strategy seems to involve always outbidding the AI on pirates, so that the strength of the pirates is a plus? 

I would suggest that it only works in single player FFA, and because other features in the second expansion are broken.  The AI are unable to gain so much as a truce between themselves, and the player is heavily favoured in relations.  You could try the same strategy against teamed AIs, to see whether it was still effective.  If the pirates were on in multiplayer, someone would lose and have to face them.

Also, this method might not make for an entertaining game.  It is crude enough that removing the features from the pirates that have annoyed others won't affect it, though.  If you just want to win, you could turn the diplomatic victory on, thats almost an automatic victory, you could get on with any domestic chores you have while playing. 

The player is heavily favored?  Umm, HOW!?  I am constantly harrassed by missions I have no way of accomplishing because the very same AIs demanding I do them bids pirates against me from the getgo (and even when they don't, the pirates target me when there is no higher bid on anyone else).

I'm sure everyone has an opinion, but the Pirates need the following alterations to make them more balanced:

First, they should be more random in whom they go after when there's no bid to target them against someone specifically.  If there is no outstanding bid, they should not continually go after the player.

Second, eliminate their bonus versus structures.  Its ridiculously imbalanced that (as just happened in my current game) 8 weapon platforms (Gauss/Beam/Missile) with 3 supporting repair platforms and 3 Hangar platforms all within supporting range of each other are not enough to handle early pirate waves.  My previous game, as Vasari, they took out a similar amount of embattlements PLUS a 2 weapon/2 defense upgraded Starbase that was also with the missile platforms, repair stations and hangar bays!  My fully defense-upgraded Terran colony died against 4 Pillagers that my Bomber squadrons were concentrating against but could not take down in time to save the colony.   Pirates should be scrappy menaces, but they're uberpowerful.  They should incur penalties versus weapon platforms, hangar bays and starbases, not bonuses!

Third, their attacks need to be spanned much farther apart, at least half again (preferrably double) their present span between waves.  Even when I do manage to take down a pirate raid with two early capital ships and a horde of embattlements, a new wave will already be on the way by the time I take out the last pirate ship.  This leaves no time to expand, take on the supposed AI opponents aside from the pirates.

Right now, I can't help but rate Diplomacy much lower than Entrenchment or vanilla Sins, as it amounts to a hard-difficulty tower defense game, even on 'normal' game difficulty setting.

Also, a bit of a tangent, but is there any good website for Sins mods?  The threads on Sins mods attempting to list them all is a couple years old and none of the forum links on the mod listings even work.

Yes.

Yes, I would imagine in multiplayer it would get more complicated. I've attempted multiplayer but my satellite internet just isn't up to it. You may note that in the referred to post I point out that I play single player.

The last part of your post seems to imply that I enjoy playing a sort of rigged or unfair game which is too easy. Perhaps I misunderstand but the tone seems rather insulting. People say the pirates are too hard. I point out how to deal with them. If you set the AI high enough, the game can still be quite challenging. I think the tension added by frantically making sure you outbid the AI adds to the gameplay.

ETA Post response to DesConnor, not Chibi. Also, it does work against allied AIs.

An advanced player (such as myself) does not worry about the pirates in SP at all TBH. Still, they are broken and need to be fixed not just for beginners but also so you can't just use them to take over the galaxy, something that advanced players can do quite well.

I'd like to know how you don't have to worry about them, unless you simply disable them in game setup, use a "trainer" or a mod, when 3 repair facilities can't maintain 8 weapon platforms and 3 hangar bays clustered together against only the 2nd wave of pirates with a 2 weapon/2 defense-upgraded starbase at hand and a capital ship (which therefore cannot help acquire new systems since I have to babysit my own systems futilely) on "normal" game difficulty.  I'd love to hear your secret.

Easiest way is simply to outbid the AI early on. It won't add more money unless it's bounty is the highest.