Quoting admiralWillyWilber,
That is basically the Thalan. That doesn't mean that you couldn't have another insect. The main reason I like them is because I thought they were creative. I would like them to do better. I'm just not that creative. I did think that alien or their copycat when originally aired the Undine were pretty creative. I thought that E.t. and the Vesari looked pretty cool. I think that the new Xander look is pretty cool they should make that a faction instead. Shape shifters and parasites pretty cool. Maybe cyborgs. Since you don't see them I think them being alien instead of Human.
Well, the idea behind the Thalan is "we're coming from a place you can't imagine, to performe a mission you can't comprehend". Nobody believe the Thalan, about their goals, about their homeworld. This is GalCiv's best attempt at making an alien race feel very foreign, along with the Yor. They also have a very distinctive gameplay; improvements dont get more productive, only more efficient.
Other races are really just reflections and caricature of humanity; Dregin are orcs, Altarians are Elves, Korx are capitalistic, Krynn are religious. These civilizations could interchangeably fit into a fantasy or scifi setting.
And thats ok. But it doesnt really feel alien. Even with the Thalan and the Yor, you can sit down at a table and negociate, chat about the weather and women. You can easily relate.