Quoting LTjim,
reply 5
... Also, if you build a survey ship or scout, be sure to use a hull big enough for a colony module and some ectra life support. That is so, if you find a bootylicious unclaimed planet, you can convert the ship right there to be a colony ship. It will start the colony with 1 (million) population. You can also convert it to a constructor, if you encounter a green or otherwise coveted resource anomaly.
There really should be a tech pre-req for moves like those. I've done that a few times, but it always feels like cheating.
The upgrade cost (see rush buying mechanics-anywhere from 7x to 12x "normal" build cost if not leased, sometimes even more-although with enough similar components the cost is reduced somewhat) and the fact that upgrade time is dependent on being within your current planetary range (some players feel the range is too large, which may be true, but it's adequate for this purpose, at least) serve to reduce the efficiency of the strategy, if not the usage of it.
Furthermore, if you commonly use tiny or small hulls for your survey/scout ships (for instance, to save costs/pump them out faster), you'll need some extra miniaturization-there's your technology prerequisite.
TA tries to separate hulls more along tech lines, but it could have done it a lot better.
Finally, do note that the planet in question will only have 1M pop-it will grow due to the additional "spored" growth mechanic added with DA, but it will still grow VERY slowly. In the meantime, it is quite vulnerable to potential enemy invasions, and it doesn't make you very much money-particularly given that colonies cost maintenance. If that weren't enough, if you do intend to ferry population to it (and other planets, if you're using this as an overall strategy), you're going to need more ships than you would have originally used-and they're going to be quite costly behemoths, even if you build them rather than buy them.
I personally don't think it's that big of a deal, but there are other aspects that could be used in tandem with it that are themselves somewhat "overpowered".