why is -8 the maximum?
I really don't want to talk about the -8 as I have been discussing what happens if a mecha fights a space craft on Wizards and it got quite hot and heated.
But OK I will give it a try here and see what others think.
surely a larger thing is easier to hit and thus a craft larger than SH (even if it is still SH because you don't want to call it some new type size) is easier to hit than the SH.
there are plenty of other factors which lend themsleves to allowing the AC and the to hit to drop below 1, range, movement, cover/ concealment etc. We don't stand next to each other, not moving, on a obstacle free open area, shooting at each other. So then the increasing mods allow for other factors to be allowed into the combats.
Thus allowing the size mod to incease above -8 brings all the ships into a better line for there chances to hit each other and be hit.
The d20F system has basically all the ships at -8, so it seems a bit unfair for the smaller ships as they don't gain any size advantage V the SH. And they should they are far smaller, take example meduim human V huge dragon (I can't think of another huge creature right now

) the human is only 5' and the dragon 20' so 1/4th the size. The dragon gets a -2 size mod for the to hit and AC.
Star freighter is 1800' and the light ships are 500'. OK only a 1/3 but still worthy of a size mod of -2 at least, and thats by ratio.
To me every size increase for the size of the ships should gain -2 not the internal size. the huge/ gargantuan or colossal but the UL, L....SH.
But the part about treating ships as creatures where you must apply its size modifier to ship's attack rolls (or in this case, the gunners' attack rolls) does confuse me. Somehow I can't find the rationale in that.
Thats called finding a simple way to do the combats, treat them like creatures and the rules are already written for them. But AOO for ranged weapons??? thats a bit of a strech.
Size/ Physical size/ Size Mod
Behemoth/ 10.1-60km/ -40
Super Heavy/ 7km-10km/ -38
Heavy/ 4km-6.99km/ –34
Medium/ 1km-3.99km/ –32
Light Medium/ 700m-999m/ -30
Light/ 400m-699m/ -28
Massive 4/ 326m-399m/ -26
Massive 3/ 251-325m/ -24
Massive 2/ 176-250m/ -22
Massive 1/ 100-175m/ -20
CC/ 80-99m/ -18
GC/ 60-79m/ -16
HC/ 50-69m/ -14
LC/ 30-49m/ -12
MC/ 11-29m/ -10
Colossal/ 10m/ -8
Gargantuan/ 8m/ -4
Huge/ 6m/ -2
Large/ 4m/ -1
Medium/ 2m/ 0
Special case:
Ultra Light (1)/ 91m-399m
They keep the slots of the space craft but size mod is by its actual size.