It would be useless to have them as a playable faction. The game wouldn't go anywhere, they'd eradicate everyone in less than 100 turns. It would be like playing against god, there's no fun in that. You've got to remember, they're tech (ala their weapons and defense) are better than even the most advanced weapons available in the game, and they START with those techs. The game would always have the same outcome, Dread Lords win.
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Perhaps. BUT! What if you had a scenario where you were the Dreadlords and all of the races were developed? To add on, the races would be done with the colony rush and they would all declare war on you. If this took place on an immense galaxy you would have to be a tough Dreadlord to win in 100 turns!
For their technology, they would be like the Iconians. Except their improvements would be 10 times stronger. They have to pump out those big ships somehow.