The slow-down isn't that noticable in multiplayer, where human opponents will simply ignore starbases and attack other targets. Things are already faster paced than most people realize, so stopping to starbase all your front-line worlds really isn't viable.
To give you an idea of how starbases are used in Entrenchment, I'll describe a match I had some time ago with DirtySanchez (that one goes down in my all-time favourites, despite having an anticlamtic ending). The map was a premade called "Asteroid Belt". It was a 2v2, each team had an Advent and a Vasari. I was Vasari, DirtySanchez was the other team's Advent.
Now, each player had one choke point (a volcanic world) that lead away from their local starting area and into a large web of asteroids. I immediately sent my Jarrasul deep into the asteroid field to capture the asteroids adjacent to both the enemy volcanic worlds, thereby cutting them off from accessing the rest of the map. I got some migrators in range and put up starbases. Both the opponents had opened by colonizing their local area and ignoring the more distant center of the map, and weren't able to stop me from getting these bases operational. The enemy Vasari sent his own Jarrasul running past my starbase line and colonized an asteroid in the center of the map, setting up a staging base, while DirtySanchez committed himself to building a massive fleet of illuminators (this was 1.181, when the unit was bugged and dealt boatloads of extra damage) and punching through.
With the enemy Vasari thwarting our attempts to colonize the center of the map and drawing a substantial amount of our fleet power to contain, DirtySanchez went on the offensive and attacked one of my two super-starbases. Repair platforms were not yet operational, so he managed to destroy the base, but he took sufficient casualties that we were able to drive him off and maintain control of the planet. We continued to attempt to lock down the rear-facing Vasari while building up our economy.
With our economies finally beginning to pull ahead by virtue of our extra real-estate, the enemies went on an all-out rampage. The Vasari made an offensive-starbase gambit against my Advent, while DirtySanchez bypassed my starbases and made a bee-line for my capital. Seeing things deteriorating, I starbased my rear choke points and sent my own fleet to attack the enemy's core worlds. In the meantime, I used my Vasari advantage to research cheap emergency facilities to delay the enemy bombardment. My goal was to capture their worlds faster than they could raze mine, and when the dust settled I intended to control all the choke points with my starbases. At this point, my ally declared he was bored and left. We called the game, since the Vasari enemy had a starbase on one of the Advent's worlds, which would cause the AI to continually suicide its fleet.
As you can see, this was an extremely starbase heavy game. I had maybe 5 or 6 heavily upgraded ones at the end, but the enemy remained actively on the offensive the whole time and keeping us on our toes. My starbases also kept my fleet small, forcing me to play very cautiously and giving the enemy the opportunity for their aggressive ploys. Good players don't let starbases get in the way of their conquests, and they've added a lot to the game.
but Diplomacy is a bad joke
It's a joke, but not a bad joke. The content did add to the game, just not a whole lot.