But space isn't a racetrack. The problem is the basic assumption, that if *nobody* is flying/driving then they're all moving at the same velocities in exactly parallel vectors and do not change position relative to each other. This breaks "suspension of disbelief" immediately: a TIE moving at speed 5 who does not "fly" will not overshoot or depart from a freighter moving at 2 who also does not "fly". What is this mysterious glue that holds them together?
There has to be a better way...
It's an abstract principle that covers all conditions, from pod racers literally racing through a narrow canyon, to starfighters who are moving roughly around each other as they dogfight.
This isn't a tactical game, it's abstract. Just like characters on the ground don't necessarily have to be standing still during their round, but they do need to spend a maneuver to get closer to another character. Likewise the starships can be considered moving around in space but they must spend a maneuver to get closer to another character.
I do agree about the range band names, I kinda wish they were just the same as in ground scale, so that "engaged" meant roughly the same as it does on the ground, just at the bigger scale.