I agree that the penalties for losing are too soft.
The death penalties as they are currently touted are too arcady. MMO's need to be anything but Arcady.
As far as pirates sailing in SOL's are concerned, it makes sense that once they lose them thjey have to go fight for another. Ships like that are hard enough to replace if you are a naval officer let alone a pirate with no legitimate access to ship yards that are capable of working on large vessels.
My suggestion is that when pirates temporarilly capture a port that they have temporary access to ship yard facilities. This would enable them to have moderate survivability for their ships and also encourage pirates to participate in conquests in a way that could really shake the game up a bit.
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Captain Joel Crehan
 
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