I keep seeing races failing to develop...at all.  In my last game, both the Yor and Drengin failed to expand at all, both possessing only their homeworld and nearest satellite at midgame in an immense galaxy with plenty of worlds.  This is puzzling, because on the past few patches, the Drengin and Yor were pretty strong. 
The Korx, Altarians, and Thalans still present no challenge at all.
I have seen only moderate success from Drath, Krynn, and Arceans.
The only powerful race at the moment are the Torians.  The humans are okay, and the Korath have faded since earlier patches but can still hang in there for awhile, and the Iconians can put up a decent fight. 
I like playing Masochistic, which I feel gives the AI's an edge.  At higher difficulty levels, I get steam rolled, which I wouldn't mind, except it is just accelerated stupidity, the AI's tending to just mass-spam low tech ships.
More than any other feature, this game needs some attention given to the AI code, as, IMO, only the Torians are currently up to presenting any kind of challenge.