Put it this way. Grab about 10 phase gates and then grab an instantaneous fleet of about 1600 pop. Enemy fleet kills that within about 10 minutes (hypothetically), their fleet is crippled, and then instantly bring in another fleet of 1600 pop. Rinse and repeat until enemy is dead.
Currently, it's quite broken.
Obviously its a bug, it should cost money.
But the whole process, as you describe, is IMHO basically how it should be, intended strength of Vasari Loyalists. Where other races get dual Starbases, TAR, jumping Starbases, Wail of Sacrificed, etc.., etc..., while their Titans are either great fleet killers or fleet supporters, Vasari Loyalists get the ability to replenish their forces quickly. Thats the cool thing about them, main reason to choose them.