Said it when PRIME disbanded and I'll say it again: this keeps happening with AI, and will likely continue to happen with AI, because it's not treated seriously as a concept or given the support it's needed. Does that mean AI is a good faction concept in itself? Well, I'll admit that historically the AI concept hasn't always been the clearest or most coherent Disco has ever had, however, the tools are there to change that. And it just feels like whenever they have gotten close, it all falls apart because of elements outside of their control.
Those tools are never utilised: continual lack of content for AI, the absolutely stupid Kappa redesign that yeeted AI into a tiny corner of the mod, random placement of AI bases, and pre-conceived notions that the players behind the official factions are stupid and know less about their own NPC factions than everyone else does. It's no surprise the burnout happens.
To be honest the limited ship line is a real killer, The SHF which is basically a VHF is no substitute for a bomber or a gunboat. The light cruiser is alright but as with all light cruisers it needs some support which means you either all log Caps or all Snubs because you can't fill the gap in between. It probably could work with a few tweaks but then the issue is balancing the ships against others in the area.
Anyway, it was fun while it lasted. I might continue to fly a bit need to figure out how to make it work without the faction