I restate my case for BETA4 build 16, haven't tried build 17 yet so I'm not sure it's still an issue there.. In my last crippling sandbox game (small galaxy, uncommon planets, very crowded), I lost the race for every single habitable planet but Mars. I then rushed for impulse drives and space weapons, and attacked my nearest neighbour (which happened to be Yor again) as soon as I had built my first ship. At the time they had 4 colonies, and 2-5 helpless ships parked on each of them. Those were quickly destroyed.
So I parked a lone ship above each of their worlds, ready to attack anything being built, and they built unarmed defenders. And more of them. And more. I destroyed *more than 50* defenseless ships that they built across their worlds while I researched invasion and built up my invasion forces to be able to take their planets. The Yor never built a single armed ship during the 60+ turns I needed to decimate them. When I invaded one of their planets, I stole the Trade tech. *RESEARCHING TRADE* was a higher priority than getting weapons for repelling my weak but nasty ships. All it would take them was 2-3 turns of research into weapons, and a single armed defender on each planet. The planet defending bonus would preclude any attack until I had built a fleet, and they would have easily outproduced me with their 3 decent planets to my single decent planet.
The AI must be improved to consider whether they are at war and whether enemy ships are in striking distance to decide which goals are more important, longterm investment or shortterm survival.