If poor user reviews = less revenue = less artist time = less ships I think a good thing to do would be to add a micro transaction store. I'd happily pay money to paint my ship or color my sails or make a custom flag to fly above my nation flag. I also agree that it's probably a good idea to get someone who is a native English speaker to help with community relations. I'd also love to see bi-weekly or monthly live streams just so people can get to know the Game Labs team and put faces to the people making this awesome game.
I don't think it necessarily means that the death penalty is too high. I think it means that people don't engage unless there is some degree of certainty in the outcome. There is nothing wrong with that, its a smart tactic.