I have to disagree, Avatars are underrated, especially now that dreadnoughts cost more (480? haven't made it that far in my 1.03 game) in 1.03 than they used to. They don't outrank dreadnoughts the way Overlords outrank them, but I think we all realize that Overlords are a serious step up.
Two Avatars are worth more than three dreadnoughts and cost less to maintain, so I certainly think they can turn the tide. Sure, the changes in the stats look minor, but play around with the combat simulator and you'll see what I mean. The avatar comes out anywhere between 50% and 80% better than the dreadnought does depending on the situation, for 35% more production (if I remember the new dreadnought cost correctly, the old cost was 71% more) and the same maintenance fee.
Also, boosting your SB defense by 11 with the two defensive SB modules that come with Avatar technology can be a major factor in holding onto your starbases.
These two factors saved my hide during the last major war I got into, and that was before the cost increase on the dreadnoughts went into effect. The war was a standstill while we were both fighting with dreadnoughts, but things turned my way as soon as my Avatars hit the front lines. This was a long, ongoing war with ships not lasting too long, so the production costs of the ships were taken into effect when I say that.