I agree (like many) that diplomacy shouldn't take a back seat, despite it being a wargame. Particularly since there are other ways to win that don't involve direct conflict. Stardock's Galactic Civilizations AI seems better at doing this (than an average game anyway).
Also, I agree x1000 that we need better startup and "world design parameter" options. To be honest this is probably one the most surprising to me, the lack of preferences and options. For me, the more the better.
As an aside, I also tend to want to establish some kind of equilibrium/stability in games like this rather than just win as fast as possible. Meaning it's nice just subsisting in a hostile but interesting world environment, doing nation/military building, and to use that to exert diplomatic influence without even trying to pursue any of the game winning goals (instead, setting your own goals...but the "world" has to be interesting enough). Most games aren't very good at enabling that kind of gameplay (this one included), and the reason is usually due to weak, irrational, or overly aggressive AI. But it might be possible to create a new type of victory condition based on that concept. "Establish peace" by making all remaining players roughly equal in strength (but lower than your own) and then getting them to diplomatically accept the situation indefinitely. But AI/diplomatic options would need to be much better first.