The Xenon are not successfully defending their sectors and are not capturing enemy sectors reliably. The ship metagame has not benefited from the I being replaced by the H. It is not equipped for stationcracking, has one docking port for drones, and is not as durable as the I. As a result stationcracking has suffered, and Xenon expansion has been sharply curtailed.
I suggest an economic, and military solution. The xenon need a learning algorithm for their economy in three tiers: Learned safe areas pay for economic ships with economic ships that survive to pay the cost of their manufacture. Xenon held sectors get extra safe sector points, if they have a two way connection to extra sectors there are more safe sector points. The safe sector ships pay for themselves, then investment in unsafe sector build sites, safe sectors are given safe sector points based on how many paths lead into Xenon space and unsafe sector points based on how many paths lead back out.
Militarily the loss of the I for the H has crippled the Xenon. With the Xenon economy secured, they can do what they do best - Von Neumann Replication. They need a new behaviour that focuses around their new fleet disposition to account for stationcracking. Basically that now relies on the K. The Xenon need to build fleets in their sectors, where they are safe, around stationcracking. Since the I is no longer available that basically means the use of enough K ships to reliably destroy stations, while also neutralising the Community of Planets forces, and the means to build Xenon stations in their place. The H is a joke of a drone carrier because the launches are one deep. It needs more docking ports desperately to launch rapid drone swarms, and it could be given long range, high damage weapons suited to stationcracking support.
I'm fully aware that game balance is a metagame that constantly bears refinement, and I can see clearly that your vision has amazing scope - you've made an amazing game! I'm hoping you'll find these comments useful, because I'm not trying to be nasty, I'm trying to be useful, see? I get carried away sometimes.

Anyway, I'm hoping you'll find these ideas worth the reading time.
