In most of the games I've been playing, it is far better to have good engine speed and good sensors (which can be offloaded onto a sensor boat) than defense. Since ships with a high attack power and the ability to attack first rip up the AI's ships, I can literally just sit outside their range, fly in kill a bunch of ships without taking damage and fly back out of their range.
Since speed and sensors are things you want anyways, it seems that defense really isn't as useful as either one and is usually both expensive and big. My goal in every game is simply to kill first always. The enemy usually never gets to strike back unless I'm unlucky and even then, it usually doesn't take out my ship.
And finally after I've done this enough times, my ships have so many hitpoints, the AI runs from them even if it could take them out if they just attacked first. At that point it's just a turkey shoot / shooting fish in a barrel.
Sooooo, perhaps defense could be made a little more useful.