Until they release a Map Editor far will have no real meaning other than it is the one distance setting where no major Civ will be in your home sector if you have more than one.
I only ask the following Questions because this might be depending on your other settings an expected result.
1How many sectors?
2How many AI?
3How many minors?
1If one sector the other Civs are going to be all over you.
2 The more you have the closer they will be to you.
3 Even if you have more than one sector the 1 minor is going to be in your sector, Frogboy said he programed it that way and I have not seen a change mentioned.
However, you are correct that the script for map generation is flawed.
I always use the max sector largest map and 2 AIs no minors settings. In almost every game I have created one if not both the AIs will be in the next sectors to mine.
Had you placed your next world generation here instead of making a separate thread for the same subject I may have known the answer to #1 and not have wasted my time typing the three questions I asked.
Appears you did have more than 1 sector chosen so Far in your first example was not working.