Yep, that pic is what it looks like with the "all objects" tactical overlay enabled. Normally, you reduce the clutter on-screen by filtering out player-launched drones, and any shiptypes you don't care about shooting or watching.
I used to play a lot several years ago. Turns out, running a 1000-player alliance is a lot of work and it took too much of my time, so I stopped doing it. I got back into it a couple months ago to do what I said above, play 1 hour a week.