My biggest grip with the AI's strategy in DL is how the AI is so passive in defense its territory. From what I have been reading in this thread it doesn't improve in this regard.
I usually play on tough, and my strategy is actually a little different. Note that I don't plan on taking over the AI in a timely fashion, or an agressive players, however it's easy to keep the AI off balance:
+ The AI doesn't seem to have the concept of intercepting (or rarely) neither it know how to post guard and patrol. Like someone already said, it seems there is a waypoint system for the AI's ship, once it leaves the planet it seems to have a set destination/target in mind and do very little improvising.
+ This makes attacking their planet is an extremely easy task. The number of ships in orbit is limited so usually it's a no brainer who is going to win an orbital fight. The only way for a defending force to match an attacking force is to have multiple fleets doing intercepting, or at least, patrol the territory.
+ My playing style is with limited number, highly sotisphicated fleets ... and techniquelly, I'm not very good at budget management. So in term of financial - expansion I'm usually behind the tough AI. However like I said, it's fairly easy to throw the AI off balance. You don't need to conquer and
HOLD planets to win. After I conquer the planet, I either ransom it back or trade it to other factions for money or tech (planets are valuable merchandise

) AFTER I destroyed all the infractructure that I can.
--> So I don't have to strecht my force to defend, have a nice bounty, leave the mess to whoever received the planet to clean up, and just imagine the cost and time it will take to rebuild a fairly high advance planet. Not to mention it's quite a bit hit to the AI economy as well, just 4 or 5 planets take over like that can easily put a damper on its budget. It's something like just wait for the AI to earn the money then go in and steal it. If they decide to chase then I just fall back to my border and with the defense line of Military base, their loss is usually around 1:5 or 1:10 ratio.
ANd like I said, all of this is so easy to do because the AI's incompetency at defending their world.