If you're an unlawful, stop complaining about lawfuls killing you. Really now. It's their job. When rogues and outcasts storm Manhattan with their gunships and destroyers, they don't hesitate to blow up any lawful they see. It's how the game works. If you're not enjoying yourself, learn to travel in groups, and take down caps in groups. It's really not that hard.
Smugglers that trade in part commodities, part contraband, kudos to you. I haven't encountered many, but most of the time, I'll let you pass after some chatter. I encourage other lawfuls to do the same too.
I've said this once and I've said this again, if you've got a complaint, back it up with proof. Screenshots, videos, whatever. So far, I've seen nothing. Though yeah, sometimes trigger happy indie caps will engage without a word.. it's not against the rules, and you certainly should've been smarter.
Also, don't even bother comparing the Navy/LPI/LSF to real life cops. 'Realistically', your ship wouldn't even have weapons (how many people on the street have guns on them?), and the lawful force would also have such things as tazers, cuffs, and the ability to lock you away for a long, long time. Oh, and overwhelming numbers too. No one really 'dies' in Freelancer, otherwise we'd have to delete our characters every time he/she/it dies. So when you blow up a smuggler's ship, you're not really killing him. More like disabling the vehicle so you can board, arrest its crew, and stick them in prison. And even then, they wouldn't be able to get out for a while.
Canasius, don't even start on "OORP" when you have a trader that supposedly trades for the Dragons by hualing diamonds/niobium through Chugoku and Hokkaido.