I can't comment on the technical aspect, but one thing's for certain, it's much better implemented than, say, the explosions in X3 Terran Conflict. But yes, explosions are sometimes way too big, but remember that it kind of serves a purpose: capital ships for example are "peeled" after they start exploding. That is to say that the normal textures start being peeled back to instead reveal more wreck-like textures. Also obscured by big explosions is the process of them actually breaking up. With smaller, more precise explosions, capital ship destruction might look a bit weird. These are my observations regarding this matter, anyway.