I'll try to answer the questions of yours that I think I know for sure.
1. Do I attack all non-homeland ships when I near the end of the game to gain battle experience?
Somewhat. Depends on how powerful I am or what to have to be. For example, if I'm roaming around with 3 (or more) fully stocked full-rigged ships, then I can pretty much take on anyone but will probably go after weak merchant fleets and the like. Later on, the merchant fleets will get more ships and more powerful, but even then its really no big deal. Only attack pirates if they are after you, or if you want to later hire them in a bar, or if you're just bored and want something new (often a good reason)...even with full rigged ships, powerful pirates are often not worth the trouble because they do more damage to your hulls than normal fleets do, which over time can cause permanent damage to your ships.
2. Way to stray to piracy and still keep good relations?
The quickest route to real piracy is to attack your home country's ships. You will quickly lose your status as a "whatever" and be a pirate. Then you can even join a new country if you want. That will get you there real fast. I think your relations with other countries will stay the same, however. I'm not sure.
3. Do countries relations go down with piracy attacks and investments in rival ports?
If Turkey owns a port and you invest in it and cause it to switch, then yes that will hurt relations with Turkey. Keep doing that, and they will get mad at you. Attacks on ships that are from Turkey will also do the same thing, but much faster.
4. Why do people hire mates loyal to their own country?
Probably personal preference. There is no "penalty" for hiring mates from all countries.
5. Do you want to make sure your captains have gunnery?
YES YES YES....this makes a HUGE difference over captains that don't.
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Ali ending as duke?