I share the frustration that it seems as soon as a ship gets sunk it almost seems like a mini-game to beat the wind-clock before the ship dives itself into the wind. Although begrudgingly I do see merit to this system.
I like the idea that similar to capping a ship if you want to do something other than simply fight and sink a ship you have to display a tact and differing approach to a sail, I like that there is some planning required to setting up a ship to be looted rather than simply sunk
I like that there could be a strategic aspect to a game in resigning to a ship being sunk with intent to loot, but other strategic priorities such as enemy ships might take precedent, and having to priorities either looting and fighting, and that the enemy could be trying to deny you loot after a sink, either through spite or strategy.
looting realistically should be a time consuming endeavor, I'm kind of glad that when you do get into loot range it is instant, although unrealistic, there should be some sort of compromise to balance this out
Some suggestions to change the looting dynamic. I realize these suggestions don't make it easier really, but might improve our relationship with looting.
Having perks that increase salvaging range, and maybe even the types of loot that could be salvaged. I like the idea that similar to other specialisations such as trading and boarding, crafting, that salvaging and salvage crews/fleets/clans could be a different type of player in the game that could provide an interesting challenge for pvpers or salvage crews and how the interact with fleets following battles and may encourage a more organic economy. Clans could employ other salvage clans, or hunt them, would give pirates an extra dynamic. There are some opportunities for interesting dynamics this way I believe.
Have mods that help salvage or loot to give further choices
Having easily removed good such as reps and trade goods be removable in battle, but bulkier things like refits and rigging you would need to cap the ship to access through breaking it up either at port, or if you had a salvage perk mentioned in mentioned in suggestion 1, you could also have it so if you have one of these perks you could spend time in OW after the battle over that battle site spending a timer to salvage wrecks, the compromise being OW exposure to ganks/rival salvage crews/interception, similar to bottle wrecks in game already
You can see battle wrecks in OW and come back to them for maybe 30 mins whatever afterwards, encouraging pvp over old battle sites, you could also use this to track hunters or fleets adding to excitement, especially for new players or players in strange waters. Again this could be perk driven, I like the idea of skill being in the captains (reflected not just in real life but also through perks) rather than in the ships (not entirely of course, it takes skill and knowledge to build ships well too) hence the leaning towards perks.
Or if we simply want to make the current system easier:
Increase loot range
Have A.I ships lose interest in turning as soon as HP is depleted, reflecting them getting to lifeboats, or getting drunk one last time, or stringing up their officers or whatever
make certain loots, either entirely or by percentage "float-able" maybe with refits and heavy upgrades they sink with the ship as is, but certain good, or a percentage of could always be available reflecting them floating out of the ship, that way a captain that still has ships to fight can still get some reward.