Pirate strength is fine. Pirate frequency is not. 13 minutes between raids and 5 minutes between missions causes problems now that the pirates are much stronger. Increasing both timers to 15-18 minutes would be more in line with their current strength. Also, the AI bounty bug isn't helping matters.
Personally, I'd just play with the pirates off. I really don't know what they would add in a game pitting friends against friends. How would you ever know who truly "won" the game with an element like pirates in the mix?
Pirates are there for FFA. They don't really work in locked team games, as they just turn into an extra military force for the team that's winning. A normal raid, two 10000+ missions, and your normal fleets will pretty much end a 2v2 game right there and then. I fully agree they should be turned off in any locked team game.