Jump range does seem low, but FD want to control how much the bubble can expand, and how quickly. The range could double or triple, but the 500ly range that might be good for single CMDRs probably is not coming. Pretty much killed my interest, since I just wanted to plonk down a single system about 6kly from the bubble, that didn't have a trail of breadcrumbs leading to it.
Given the restrictions and work involved, it's just looking like a community or squadron feature. What will players do with it? The highway to Colonia will almost certainly improve. How will the Colonia people feel about that? Not sure.
I'm probably alone in this, but I'm unsure what the point of colonization is. If the feature was useful to the player in ways similar to FCs, it would be pretty attractive. Or if the feature was more in-depth in terms of what can be placed and built, it would be attractive to players interested in immersion, or roleplay. Or if "owning" a settlement involved new gameplay or features, that would be a draw as well. None of these seem to be present, so right now it looks a bit pointless. It's early days though, maybe the uses of colonization will become apparent when we find out what the Thargoids are planning next.