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How good is this ship or how bad is this ship?? I was thinking playing this ship in a 2000pts. game but putting 500pts in one spot is not the greatest idea!

Good idea. Worth 500pts but not overpowered to me.

Well, it is pretty literally a Deathstar unit. I've yet to play with or against it, but it would be a pretty difficult thing to take down; even with only 5+ armor, it still has 4 shields, 5 turrets, and a whopping 14 hits. As you pointed out, though, the cost is its biggest drawback. Your opponent might very well be able to bring enough ships to wipe out the rest of your fleet and work around to the PK.