There's that region "hop"
(×0.75 Per distance hop Based on area, region, super-region etc.= on wiki:
https://eu4.paradoxwikis.com/Relations#Aggressive_expansion
I found this video from Siuking, there are some interesting tips, few things clarified about distance.
So anyway, looks like distance is based on nearest _cores_ between nations and AE decays based on it. But AE also takes somehow ceded province into account. Anyway, so if you spread your colonies you shoot yourself in the foot. You want to be contained and not open new fronts -_-. We kind of knew that but its stupid as hell. It also takes vassals into account so having distant vassals is very bad for your AE - not sure abou subjects in general. I am supposed to play locally and smack africans because if i go and "see" Indonesia Sulu will now suddenly start to get angry. If you happen to colonize island in middle of indian ocean and reduce distance they get way more angry. Basically as we knew terra incognita is your friend.
Real issue is that furthest cutoff point seems to be ~24% AE for distances >400.. meaning any of my conquests anywhere in the world will cause at least 24% AE to other nations - +- percentage modifiers - sunni's get freaked more in this case.
Taking a look at that screenshot - Mamluks are getting 118 AE so you start from there - and for example continent locked Transoxiana is getting a lot -28.. i have no land nowhere near them. Its almost same as nearby Warsangli -31... i have land next to Warsangli, and its just south of area i am taking land. Ana Malacca thats 5000+ km away is getting whooping -25AE because i have a colony nearby. This really is not working well... Mallaca should get like -2 or not know about conquest at all for next 50 years.
That -10 on other continent should help a bit, one conquest more i guess.. but with large scale conquest we get what we have on screenshot. I am not winning a war vs otto and caring for that -10 to stop pissing of Sulu -_-.
Anyway i took land for experiment - they all got freaked of ofc. Then i attacked Ottos and won a war (before Otto joined coalition) and coalition broke immediately. These countries are so spread around and weak that without Ottos coalition doesn't work. Ottos don't even have access to Indian side of the world - they are locked from beginning of the game. Anyway its kill all sunnis now i guess because i can't touch other religions since Sulu would coalition with France that didn't even colonize around.