I hate the universal translator. It was an invention of convenience in Star Trek, yet is now almost canon in every sci fi strategy game. Trying to reach a common ground of understanding between two species from opposite ends of the galaxy should be a momentous project fraught with difficulties. Instead it is one of the first techs you can research, and for a pittance too.
Diplomacy with others should be approached on a species by species basis. I would like to see funds which must be allocated to each race (ala espionage) before you can talk to them. At low levels of spending there should be a very basic War/Not War diplomatic option, which could evolve to treaties, trade and tech options, etc. - this is in some ways similar to the way diplomacy evolves over time in CivIV. Any universal translator should really come at the end of a very long tech path.

This would force the player to really decide whether communication with another race was worth the expenditure, and add another strategic level to the game. At the moment it seems as if the whole area is rather glossed over - there are 500 types of missile defence, but only one overriding technology which at a stroke solves all communications difficulties across the whole galaxy.

Oh, and the game is still fab btw!