Obviously the balancing and creative issues are much more significant, which is presumably why it hasn't yet been implemented. (I would prefer to see ways to develop - or de-develop - existing systems being prioritised over procedural colonisation mechanisms, since there are already enough systems around in general)
Yeah... that's the dream right there. You could baseline systems to, if left unattended, "normalise" around an average population and wealth based on the quantity of stations in it... and have each station contribute a portion of that population.
Then I'd love to see things like Famine, Outbreak and Civil Unrest cause population decline... if a population declines enough, stations gradually go into the "repair" state, except to distinguish it from the actual "repair" state, make it derelict, so kinda functional like one under repair.
Meanwhile, negative security and economic states affect a system's wealth. The lower their wealth, the lower the average population that can be supported becomes, and so that causes decline as well. Of course, the lower the population declines, the easier it is to bring things back from that brink, and eventually left alone it stabilises again.
Of course, positive states such as boom, civil liberty and stuff would have positive effects, and the reverse would happen. Positive economy stimulates growth, but fail to maintain that high economy, and you slingshot back down. Sustain it long enough and you get things like the "Tech Breakthrough" state to increase outfitting/shipyard options, and maybe even make certain goods not normally available, available on the market.
Hopes and dreams. But auto-colonization... that's not really on the radar for me when there's so much more that could be done with what's currently there.
Edit: you know what i really wish the bgs and, heck, ED as a whole operated more like?
Sid Meiers: Pirates. Although there's some aspects that would be necessarily transparent to the player, the ebb and flow of colonies in that is what I'd consider the "gold standard" even today.