I'd warn you guys a bit. Newtonian sounds kinda nifty but go and play B5: IFH for a few minutes and you'll get downright bored stiff.
Even realistic combat sims like Lock On Modern Air Combat and IL-2:Forgotten Battles were much more fun than that.
Keep the arcade physics but add the side step controls for an added BSG feel to things. Make the combat fast, fun, interesting.
I'd suggest that you go for something close to what they do on the show. Rapid fire, slight dispersion of the shots (very slight), unsyncronized firing, make the damage substantial but not one shot one kill. I also learned something from doing TBP's tables.... as fast as they do it in the CGI, slow it down a notch. Keep it game paced.