I've found a fun way to expliot the Dwarg and their tendency to make a cluster of colonies close together.
When you find one of the groups of Dwarg colonies, you can fly right into the center of them and neither the dwarg ships will fire on you for the risk of hitting their own bases and the bases themselves also hold fire because of your close proximity to more than one base.
Now to have some fun. Target each colony and carefully do 99% damage to each. Now move away a bit and shoot one of the colonies. The explosion will set off a chain effect that should destroy all colonies in that cluster. If there are now too many dwarg mad at you, camp on a nearby planet and let the dwarg that have chosen to join you fight with those who have not to slim down the opposition a bit. Then you can pick off the remaining few dwarg and loot to your hearts content.
