For those who say "Elite isn't a PVP game":
You're wrong. You're also right.
Elite isn't PvP like starting up a Call of Duty deathmatch, or even CQC, in that PvP is the only thing to do. Life isn't PvP either, entirely.
But the element of person on person conflict does exist - both in Elite and in our day-to-day lives.
I could be walking down the street and be confronted by someone wanting to rob me (PvP), or in Elite, flying a load of cargo to another station and interdicted by someone who wants to rob me (PvP).
I could (re)enlist in the military and be shipped off to a warzone in the Middle East (PvP), or in Elite, sign up to massacre ships of an opposed faction, which could include other players (PvP).
I could wander off into the unknown and be accosted by a drug cartel (PvP), or in Elite, simply be off exploring some part of the galaxy and be beset upon by wing of thugs (PvP).
Or None of these things could happen - I could walk the streets, join the military, or explore the unknown and nothing at all happen. And in Elite the same holds true. PvP is an Element, not a Primary Feature. If you do not wish to engage in this Element, the only way to ensure you will not is either to play Solo or in a Private Group. Now you may think this might limit your ability to interact - and it can. Or you can spend some time in Open, at one station or another, and talk to people, make some friends, and talk with them across modes. I talk with a lot of Open Only players while putting about on some planet looking for various materials in Solo, or while wing-hunting in Private groups.
Personally, I don't PvP. I don't want your cargo, I don't want to shoot you - much as it is in the real world. Yes, I have a permit to carry a concealed firearm, and I do. And I hope every time I put it on I don't have to actually use it. I feel the same way in Elite - yes, there are hardpoints on my ship, but I don't want to have to use them.
And that addresses the piracy portion of this.
Let's move on to Bounty Hunting...
I've blown up very few actual people, and only have because they've asked me to, in order to clear their own bounties.
But it is a very core career path in Elite, and one that needs little justification. If you have a bounty its because you've broken the law.
Maybe you've done nothing more than to neglect to pay your parking fines, maybe you're a cold-blooded murderer. The bounty hunters out there can't differentiate this by any scan.
So running around with a Wanted status is like covering yourself in barbecue sauce and walking in to a village of cannibals.
There are currently few options when it comes to clearing your name in Elite, however.
Death will do it, and Time will do it, and that's about it.
Perhaps in the future there will be some other options, but until then, this is what we have to work with, so use it.
Or make Open friends and go to Private Groups or play Solo. But don't expect Open to change the way it operates to cater to how you want to play. It would be little different than asking the public swimming pool to drain the other end of the pool because you're afraid of water over 4 feet deep. You're not that important, and other people don't want to swim in the shallow end.