SOOOOOO. What does this "upgrade" do for me?
Check out the full changelog here:
https://forums.sinsofasolarempire.com/406435
In short, it rebalances pirates to be quite playable(the AI will bid on each other too, based on who seems to be the most dangerous-- military ranking might be the mechanic behind it). It also tweaks some of the different capital ships, generally making most of those affected stronger.
After having pirates turned off for so long, people might leave them that way... But I had fun playing a 4-way match on Devil's Cauldron with them turned on. For those that don't recognize the preset map, it has 3 pirate bases around the star, interspersed with ~6 volcanic planets. From there desert homeworlds, asteroids, and ice planets extend out, with the latter connected via dead asteroids to other player's ice worlds. The pirate bases funnel some of the action early on, and bidding on raids can make a nice difference.