Hey, Warborg. Nice to see you here!
I'll admit the AI's behavior does leave a lot to be desired at times, especially when it comes to diplomacy. In truth, it's probably my biggest pet peeve about the game. My personal favorite is when an empire declares war on me the turn immediately after I meet them; it's as if they decided they were going to hate me from the start....
Still, it's usually not detracted from my enjoyment of the game overly much. BOTF easily remains one of my top 2-3 PC games of all time, and the fact that I still play it regularly 10 years after it was released says a lot about it....that, or my sanity!