I imagine if Dimensional Eclipse was released without Auto aim... it would be some kind of hell to kill even one enemy...
For me the FS Physics and distances are only gameplay wise. In escort missions, we only participate in the few minutes where the action takes place. In universe canon escort missions take hours, regardless of how fast the ships are. In my personal freespace universe, i use for my fan-fictions, the in-game speed and ranges are only scaled down versions of their "real" counterparts.
I think for gameplay reasons it makes much sense to use slower crafts.
I think the battles are much intense this way, especially if you have capital ships involved. A Colossus would not be so impressive if you can pass by it in only 5 seconds... i think the whole universe would seem much smaller. And this "greatness" was always one of the strong parts in both games, especially in FS2.
That Freespace does use arcade physics instead of Newtonian ones lies in the same reason. Play Frontier - Elite 2, Frontier: First Encounters, Independence War, which also uses slowed down vessels during fight sequences, and Homeplanet and compare it with FreeSpace and others... the battles are more intense in the latter ones and make, imho, much more fun.