That's the thing where I don't agree.
If the real coast guard encounters smugglers, they'll board their ship and detain them. Not just kill them all and confiscate the contraband afterwards. Why would lawfuls be allowed to just go around killing criminals??? That's just plain unfair AND unrealistic.
As for the "shoot on sight", I don't disagree with that in general. But if you are superior, you shouldn't just blow the criminal up. Bring down his/her shields, damage his/her hull... maybe say something like "cut your engines and surrender your ship NOW or be destroyed!" - if the criminal doesn't comply, you can kill him/her.
