I think the game would be much more interesting, at least with Free For Alls, if the default stand towards all other players was War and the AI's didn't continue their perpetual vendetta against anything with a heartbeat.
All of the Free For Alls with unlocked teams I've tried (3, 4 and 5 player ones) have all gone along similar lines. I tend to end up tangling with the first AI who is close, and their annihilation is usually paramount since I need their territory. I don't mind being at war with this one, it's all well and good.
But then I'll encounter the second one, who's is already at war with me. If I'm lucky they'll start to throw a good number of missions my way, since I cannot initiate diplomacic transactions beyond proposing things the AI rejects because our relations are poor (and credits, metal and crystal appear to have no effect). With some luck and good missions I can keep that AI happy with me for a while, at least while I destroy the other one. But even then just not completing a couple missions tends to drive them to war with me, even when I'm much stronger than the AI.
Once it goes above 4 players though things just turn into a mess. I'll typically again target an AI, but the other two will give me different missions (often far away, attacking one another) that I inevitably fail. I never get to an alliance with either in the first place, but these failures apparently make them hate me even more, because all three usually come at me in force.
The higher the number of AI's the more confused the missions seem, but they all seem to end in one way, the AI players all attacking you.
Locked teams I've seen some usual behavior (like an AI jumping out of its system to attack me while it still had a couple of strong opponents in it's own system). They seem to still like me disproportionately, but it's pretty clear that they're not beatdowns either.
I really hope the diplomacy can be fixed or even expanded upon, right now it seems to be a moot point of the game.