To many people here say that pirates should be restricted in crafting or in the ship types available to them because that is how it was in history. The problem there is that this is not a simulator, this is a game. If we go full realism here, the game will die. We need the game to be fun, we need the pirates and all nations to have fun. Nerfing pirates back to Mortimer might make many national players happy, but it will also remove alot of the fun factor for the pirate players, and thus hurt the overall population of the game.
I am in agreement that pirates should not be able to capture ports. Raiding is a better idea for them, but don't restrict what they can build or what they can do economically unless there is something big to balance that out. I like the idea of pirates being able to modify ships, which would give them a battle edge, but not if they are restricted to only 5th rate ships or lower. I also agree that 1st rate ships should never be built by pirates, but in the interest of keeping this game FUN for ALL, they still need access to them, through free town shipyards for example.
I also understand that pirates are going to be excluded from diplomacy, that makes sense but pirates need a black market where they can offer services as mercenaries. Pirate clans should also have the ability to be allied with one or more nations and hired as privateers to aid a nation.