Perhaps the solution is scaling fines. It sounds like they're willing to die because their cost is very low. If repeated bad actions had an exponential fine increase, it could quickly price them out of this activity. Previous fine x10 each time they violate the station rules. They could ignore it for a while, but soon enough if they couldn't pay it it would make them wanted, and they'd be kill on sight when they launched from the station. Quick way to a sidewinder in the starting location if I understand the game mechanics correctly. Surely they wouldn't be dumb enough to do this in their starting location forcing them to wipe the save before being able to leave the station. Right?
Exponential fines sounds like an interesting idea - but wouldn't that also mean that pirates with bounties of several million in the current system would have BILLIONS instead?