Thank you Stuart ... it is important to stick to facts not propaganda.
For your reference King James Stuart was considered a Prince Etranger (Foreign Prince) at Versailles with patents of French nobility. It was common for Jacobite nobles to be granted titles by different courts, though not all were recognised. Many English nobles also have titles in the Scottish and Irish peerages. One interesting example in G7 is the Duke of Berwick, half brother of both King James and Marlborough, who is leading French troops in England as a Marshall of France. His official French title would be Duc de Fitzjames, but to keep things simple in the game I continue to refer to him as the Duke of Berwick. In real history he was also granted a Spanish noble title, Duke of Liria and Jérica, though somehow I can't see this happening in G7. For reference although his English titles were forfeit in the eyes of William, they were not so in the eyes of King James so it is still legitimate to refer to him as the Duke of Berwick.
You are correct that it would not be advisable to speculate on the loyalties of Contre-Amiral Rene Duguay-Trouin without checking back issues of the newspapers. In G7 I regret to say that Jean Bart died in 1701 before the commencement of hostilies; Admiral Claude, Comte de Forbin-Gardanne sails aboard his flagship
Le Solei Royale in command of the French Caribbean Battle Fleet, which is currently engaged in hunting down pirates! I don't recall there ever being a time after his father's death when James Stuart could not be considered at war with William. There was a time when the press reported many 3rd parties using Jacobite flags to act as pirates in various corners of the world. Historically Jacobites did disperse after 1695 so in theory it is possible that Jacobite exiles were able to buy ships themselves and spontaneously carry out acts of piracy beyond the central control of King James. They do not fit the pattern of strategy employed by the Jacobite Navy which has been to hit Williamite trade round England only.
William hasn't had much chance to hang Jacobite sailors as throughout the campaign the Jacobites have lost only 2 corvettes. However, I found out a few months ago, much to my surprise, that captured Jacobite crews have not been treated as pirates by William, but pressed into service by Williamite ships! It now adds greatly to the morale of the Jacobite Navy in boarding actions who consider it their duty to liberate more of their former comrades and treat them as heros when they are freed! If this was to be a widespread policy then it will almost certainly make it easier to capture enemy ships.
Otherwise I would tend to agree with you about the difficulties of running any kind of pirate position. Piracy is always much easier in times of war when pirates can hide behind false flags and make common cause with other countries which may be encouraged to turn a blind eye. It may be different outside of Europe and America. Perhaps piracy is easier in the Far East or the Gulf or Slave Coast? It is probably easy to play a pirate for a few turns, but longer term it must be one of the hardest types of position to play. Probably just as well for the rest of us.