Area damage weapons?
 

I sometimes get fighters shot down even if they have very good anti-missile equipment. That makes me think I am getting hit by splash damage as opposed to just MIRVs. Maybe regular torpedos have an area of affect just like the alien torpedo?

i'm no expert on missiles, but, some good missiles have over 4 warheads, so, some of it will break your missile defence for sure.

I was just testing this deliberately. Yes, torpedoes have splash damage, and can destroy a tight cluster of fighters in one hit.

Most missiles have splash damage, some of them just have a really small radius. The ones I use most frequently, SRM-24 Scorpions, aren't torpedoes but have significant splash damage.

Usually what gets my fighters is premature MIRV explosions (since apparently they can go off before they're supposed to). Also, enemy squads tend to get blown up by this as well, it's funny. Except you get no exp for it which sucks :-P

Area damage weapons
 

Yes there are area damage weapons and in fact they are much more better in some battles that MIRV. I use Hellbringer - he is almost perfect for getting past the enemy antimissile systems and in many cases it can destroy the whole squadron in one hit. It has also long range so with good scanner you can destroy waiting enemies even unnoticed. I cleared this way the whole system where you are ambushed by the Kruger pirate or the aliens in the X220 system.

I just destroyed all the aliens in the Dyson sphere with 3 Hellbringers and 4 low tech torps without have them fire a single shot back, oh wow.

yeah, most of the enemy need a better radar
:-x

How does Stealth System work?
 

Speaking of rader, I assume "reduce sensor signature" just means that the enemy will have to come even closer to detect my fighters? Or does this affect their accuracy against me as well?

not after they can see u i guess