I haven't been in New York much lately, and dont know what I say is still true or if my experience can be generalized, but nevertheless:
As far as I know, lawfuls (not only the LPI, Im just mentioning this because it MAY also be a thing other people "whine" to the LPI about) sometimes dont attack pirates for the sake of fairness to the pirate player. If a trader gets blown up because of that (which I did once, the pirate asked for money although I was empty), they are bound to develope negative feelings towards the police/navy that refused to help. So, if people complain because police/navy refuse to help, I think have a right to do so.
About the problems with indy players...
What is your recuitement policy? I think factions as important and the LPI/Navy should be open in recruiting so they get a chance to teach at least the people who are willing to learn how to behave responsibly. How about an ingame police accademy?
In any case, no matter how justified your post is HAck, I fear most people who are causing the problem (incmpetent indi police as well as whining trader) dont even read the forums, so something ought to be done ingame about it.