Just asking: Is there any way of making a system for combat requests: similar to trade request, where you type your rp reason for the atack and the other person accepts or not. Not accepting would lower your rep with factions or disable cruise engines or make docking inaccesible or something similar or better than that.
In order to eliminate absurd pirates you must limit the money a pirate can ask for, and the only way to do that is to only allow them to ask for cargo. A reasonable trader would carry credit card items with at least the minimum value of their cargo(insurance mone). That way there is actually a way to recover your money from a pirate, ask a bounty hunter to catch the pirate. And if you dont get pirated you get an insurance bonus.
I am throwing ideas here, as someone said, we must look for solutions to stop the decline.