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You could of course do that but I think they outproduce everyone so badly that they will likely go for a domination strategy. They either produce fast enough to claim systems early and develop them quickly or they just take them over. So border growth is not so important imho.
Meritocratic cosmopolities indeed is a better option to engaging denizens and loyal citizens, but you will end up with so few of your own population, that it doesn't really matter.