I think you have the wrong thread Smithy, this isn't flood.
Back to the discussion at hand, in regards to spreading the /nodock to non faction members I would vote against it due to the potential abuse without any form of accountability.
The whole pirate v trader thing is a totally different situation, mainly due to the fact it's escaping from unlawfuls to a lawful base. Basically a smuggler docking on a pirate/junker base as opposed to docking on Manhattan. As for FR5's being damaging to smuggling, well that really rests on the admin team and the faction leaders and I would hope in the very least that the admins would deny the request if it was undeserving.
Now the actual fines and punishments for attempted smuggling do require some form of regulation, probably in the same way that piracy demands are currently handled e.g. that excessive demands are sanctionable for harming gameplay. Any suggestions on what the upper limits should be in that respect? Remember to take into account the cargo and the ship size.