So to preface this: I like having Hyperspace. The way I understand it, Hyperspace is a more competitive format used for strict faction balance and better squad balance. Then Extended lets me do all the fun stuff I like doing, like fly all my favorite characters from Rebels or experiment with cool random Scum ships I've never seen before. I think both formats are needed, and neither can exist without the other.
Initiative vs. cost is an interesting balance issue. There's others, but this often ends up being the big debate (aces vs. swarms, etc.). As users of Strange Eons will know, FFG had a very linear 1 point per Pilot Skill thing going on in First Edition. This has largely carried over to Second Edition.
FFG stock initiative pricing works very well on stuff with no/limited reposition. Rebel Y-Wings for example: every single pilot is good (yes Y-Wings are a very good chassis and some pilots are slightly better than others, but all are relatively close). It doesn't always work out so well.
It seems weird to look at the TIE Advanced and be like "is Supernatural Vader really worth three times what a normal dude in the same ship is?" The answer is yes, he is. But not for everyone.
I think the main problem is that pricing needs to be different for different player skill levels. Note that I don't mean this in a demeaning or unkind way at all.
Some people are less experienced with the game and want to fly the main characters and do decently well, but the game is so reliant on positioning that at high levels of competitive play, the ace pilots need to cost more comparatively. For example, when I first started I really wanted to fly Boba Fett and Darth Vader and I lost a lot. It was disheartening. I used to be not very skilled at this game, I played it a ton, and then I got more skilled at the game. I'm no smarter, better, or more interesting of a person than when I was bad at the game, actually knowing how brain cells decay over time I'm probably stupider.
With the current method, I think that it is interesting that points end up needing to straddle the line between casual/new player "we need main characters to not be too hard to fly" and competitive "we need absolute balance" mindsets.
What would you think if Hyperspace added a slight tax on things that are seen as having a higher skill floor (and thus currently slightly underpriced from the perspective of a more experienced player), and Extended made these things slightly cheaper to encourage new players to experiment with things that are often seen as "hard to fly", such as aces? Would this require a third format so that people who want to play competitively with all the non-Hyperspace ships can do that without it devolving into ace-wing?