Instead of ranting, I think you should try to look on the bright side.
1. Yes there's lag, but there's also a larger amount of slots (200) available. There are also the other servers, although they are not as full as the original one.
2. Ahh, and I thought everyone was finished with the issue. The decision was, I believe, to have some target practice with the foreign ooRPers, because those who don't speak English well but do want to RP have a dictionary nearby.
3. That would not work. Many people don't want to become a high level to PvP (after RP). The bright side is that there aren't many people doing that, and even if you have been killed in your lv5-29 ship, I don't think you lose a lot except the time that it will take you to start your journey again. (Yes I have been killed in my Starflea in NY, but I paid little attention because I re-spawned really close to the place of my death)
4. Now on that I do agree with you, cap ships -should- be faction-only, and only in high ranks. Although making them more expensive is pointless.