Thanks for all the info guys. I have been reading other posts on pirates on the forums and I see one of the biggest ways to avoid getting pirated by a large organized group is to stay out of Liberty space and other high traffic systems. A large group of pirates is not going to sit in a system that only gets 15 to 20 ships per hour. I also am starting my own log of known pirates so I can watch for them.
This particular group was sitting right at the Colorado-NY gate in Colorado. So they stopped me coming in from NY before I even was able to control my ship. He did RP with me a bit but told me to stop talking when I said something. When they blew me up, it only took about 3 seconds or so. I guess a civilian transport is no match for an organized group of pirates.
The one thing that would seemingly make it a bit more fair in my eyes (I am guessing a pirate would disagree) is that if they shot you down, they would risk blowing up atleast half of your cargo. I would be much happier to give up half my cargo and continue on my route than give it all up and have to start a new trading route. That would also make a bit more incentive for them to not blow you up.