I think the system is fine as it is, what I believe needs to be simplified is the explanation of it. Keep the mechanics as they are, just explain it in a way that is easier to understand. Most new members aren't going to spend a day or two trying to understand things before jumping in. Most of them, experienced or not, are going to read a bit of the plot, check out the races/empires, and jump in, regardless of intelligence level.
The main problem is we're dealing with abstracts. Everyone has a different idea of what 'Existence' is, and yet we use it so much that of course it's going to cause misunderstandings. The second biggest problem is that we're doing a poor job of explaining a relatively simple system. It's not the system that is flawed, but the way we describe it.