As it so happens, I was working on this this morning! Diaspora has the same problem. The AI sucks at following paths, especially in high speed, high damp ships.
The good news is that I've found some ways to modify the AI so that this works a lot better, at least for the departure-path case. There are a couple of factors that cause the AI to be stupid in cases like this:
1. By default, the AI won't fly the whole path. They'll shortcut to the furthest point on the path that they can reach. That explains why moving the path points further away doesn't help much.
2. The AI gets really retarded if it misses a point, and starts turning at a really reduced rate. The reasons for this are a bit technical, but I've found the code that does this stupidity and figured out how to work around it.
3. The AI makes no effort to stay "on" a path, it just points towards the next point.
4. The AI does not compensate for ship momentum when following paths.
I am working on improvements that helps the AI follow paths a lot better, fixing the problems mentioned above. The code isn't very tested yet, so I'm not sure how it handles all situations: I've only tested it with departure paths so far, not waypoint paths, arrival paths, or docking/undocking paths. Stay tuned, though, help is on the way! If all goes well, I'll probably have a patch and test builds available as soon as the end of the week.