If the guy who fled initially came back on a different LSF character you should be reporting him, that's against the rules, unless you left New York too.
As for limiting pvp numbers, I think it's a rule that would get too confusing should you have a combined force of a bomber, couple of fighters or something. When you start mixing and matching the forces you'd have to work out on the spot how many battleships could engage and that just gets annoying and there's too much room for human error.
Anyway, I'm somewhat proud if I get that many battleships after me, shows I'm doing my job as a pirate right;). They'll never catch me anyway, as I'll hightail it as soon as they're all within scanner range.
A cynic is a man who, when he smells flowers, looks around for a coffin.
~H. L. Mencken