It doesn't say that - there are hints that diplomacy might not work.
There's one console that allows you to set ship status to Yellow or Red alert, and another console lets you raise and lower shields, so there are definitely "hints" of defensive capabilities.
I've been playing around with this very spartan demo, and it is interesting. It has a long way to go before it is anything resembling an actual game, but I think it has promise. I guess we'll see. The promo video on Steam shows a lot more than the demo includes, so presumably the devs are farther along than the demo would imply. Anywho, here's a picture from the bridge in orbit of a random planet I flew to:
And here's a picture from the reactor room:
The graphics aren't super-amazing (lighting seems rudimentary), but it's good enough for me. The devs just need to finish the models (most of the ship is empty rooms) and add some proper gameplay.