I suspect that Ryat only plays the Distant Stars mod which, last I checked, would allow him to build a huge fleet very quickly, making it easier for him to counter the pirates.
I also play the base level to do research, though it is a lot harder so I have to drop the AI level a bit
@bgilliford - so what you are saying is that the caps for the pirates are still set too high (which I do agree with and have the DS pirates turned down a notch in key areas in that regard) and that you would like to remove the scaling power levels of each individual ship and increase the size of the fleets based on credits thrown their direction
I say no, due to the game mechanics (phase lanes, choke points) and starbases, pirates just get eaten, throw in a cap or two and you can home grow your very own lvl 10 cap (can be a little slow and time consuming)
flipside I do agree that just upping the power of the individual pirates ships is not the answer, personally I would prefer something along the lines of the TEC tier 8 research Insurgency where the pirates randomly attack one or two planets of the player that loses the bid much in the same manner as the Insurgency effect only with a bit more stronger force and also change up the attack and destroy planet idea to more of a pillage idea, some damaged to the planet is caused but you lose income at high rates to show looting. This would stop or make useless the idea of pirate fed caps and would force players to be a bit more mindful of their rear areas.