I didn't get past page 7. I REALLY tried to read this enitre thread but 7 pages and my eyes glossed over.
Here's my opinion:
Too many pirates started cap whoring by pirating in gunboats. I can see running into the occasional pirate gunboat but now it's all the time, all over. It's rare to get pirated by a fighter or bomber. In my opinion, a bomber would be the best choice anyway, it has the firepower to destroy a transport. Role play wise, the Transport has a chance if they can aim thier guns. No chance against a gonboat though, shields and armor are just too strong for transport guns.
Pirates started to rule the server because of gunboat cap whoring (yes, they're classified as caps) so too many traders got fed up and demanded the lawfuls do something. Now they have but went a few steps too far, but it was still in response to too many pirate gunboats on the trade lanes. I'd wager most of the bad rp is by traders that have been over taxed by pirates, being stopped 3 times a run but pirates, each demanding $2 to $4 million. Well, there goes all profit and it no longer pays to do trade runs. I'm even more a mind to tell the pirate to go ahead and blow me up because my load costs less than 500k to replace and all I have to do is take a different route next time. Well, no rp there either.
This is a problem that, like it or not, care to admit it or not, was created by pirates who do not rp very well either. The last time I got stopped was in my smuggler, to tell the truth. one of the few times I went near a trade land and some LH~ stopped me. I tell you what, that role play was fun and I left the encounter with hope that more pirates could be like they were. Maybe it was because of my Smuggler ID, maybe something else but I stayed and RP'd a bit more after being allowed to go. It was all good.
As for pruning back the amount of cap ships; I think the best thing would be to sanction the ships right out from under someone that does bad RP. Anyone, lawful and unlawful alike. Put them back in a starflea (2nd, maybe 3rd offense) with the message that lack of rp will not be tolerated. KOSing a non-aligned cap ship would lead to civil war because the indies numbers are getting pretty big too so [LN] can not discount their strength. Sanction the offenders and the numbers will eventually thin out.
[LN] might also consider hiring new recruits that are typically online when their numbers are thin. That way their presence is more uniform instead of bloating and deflating drastically.