Ooh, interesting stuff. Now I kinda wish I'd signed up for beta round 0
Couple of observations:
1) Tridus already mentioned this, but I'll be more specific: combat strikes me as being rather too fast by virtue of units killing each other too quickly - it seemed to me like the enemy flagship popped your cruisers in one hit during that first round. This is rather like the problem the tactical combat in vanilla Shogun 2: Total War had: there was no point in trying any fancy maneuvers once the fighting started because by the time you got your units into position the battle would be long over one way or the other. (You saw this during the second round, when the AI tried that flanking thing* and just ended up being defeated in detail.)
Just my thoughts on watching the fight; I might try out the game myself and decide it's fine after all.
2) Drag and drop would probably be nice for rearranging ship queue.
3) I think battles would look more interesting if weapon ranges were longer, so it looks more like proper ranged combat instead of a hand-to-hand brawl. Not too much range, though; you want to be able to see everything important without zooming out hugely.
4) Pausing the game should also pause ship animations (and missile trails)
*Is there a damage bonus for flanking or something? It didn't seem to be otherwise directly useful from what I saw.