I understand the privateer point you make, but being able to switch back and forth between pirate and privateer seems off. Do we want one pirate to have reap the benefits of being a pirate AND a privateer? There has to be some kind of downside to playing pirate(and playing a national) I would think, otherwise the entire playerbase is just going to fly the black flag. Choosing the path of least resistance is human nature.
Pirates associated themself with other pirates creating fleets, invading cities
Turning privateers, returning pirate etc. Accepting pardons etc Allowing pirate clans to become privateers for a nation, return pirate etc, will split the pirates to not act anymore as a nation, will allow finally pirate on pirate fights, coalitions, transforming the pirate experience into a dynamic enviroment full of betray, political instable alliances towards and against certain nations etc
I feel that some of the points everyone is making right now are just in vain, since the pirate rework is coming somewhat soon.