I routinly play challenging and above in large galaxies. What I do is put on at least 4 engines, usually 4 on most of my ships, unless its a fighter. then i load the rest with weapons until its max, and if at all posible, i put on armor/life support, depending on how spread out i am and need range. Thus, this allows me to be NASTY with the enemy, using guerilla tactics almost all the time, ie, hit and run, hit and run, hit and run, until he has no more ships, then go on a rampage destroying the ships on planets and attacking as i progress. i find this works VERY effectivly, and it does not matter wether your using high, low, or so-so techs, the enemy loses almost every single battle.
Armor is NOT needed in most cases, as if your being attacked, the AI is stupid enough to send fighters vs 3-4 battleships, or 3-4 battleships vs 20 highly advanced fighters. (In the few cases where I'm attacked, anyways, as most of the time, I run from a planetary fleet, using my extreme engines to hit the enemy, and run away again before it even gets the idea to attack the fleet.)
I also refuse to fight without a fleet. IMO, most of you people that are using armor are wasting time. Try using weapons as armor sometime, you'll find you win a lot of battles. As long as you keep in mind to keep the speed at an extreme, keep the firepower at an extreme, and attack first.
ps: for defending planets, I usually alter from that tactic slightly, puting on a little armor so the ships can survive being attacked so that the higher damage ships can rush in from a nearby standby position and terminate the enemy.
With the current AI being so dumb, guerilla tactics work. To a massive extent. Even if I'm overwhelmed, for every ship I lose, the enemy loses at LEAST 5, even if same tech. If I have a tech advantage, for every ship I lose, they lose 20. Dare all you people who scream armor is necessary to play a game without armor, at all. You'd be amazed