Frontier are constrained by their budget, there are no monthly subs to pay for server farms hosting a non-instanced environment, nor anything like enough micro transactions to attempt it.
It took CCP nearly 8 years of monthly subscriptions, tens of thousands of lag fests and complaint threads and the heaviest investment in a server farm seen in history. In the end, they had a server farm that set a new world record, yet still bogs down to a crawl in busy systems forcing them to come out with crap called time dilation and they have the benefit of not having to host a game offering twitch based combat.
The reality is, the current system in ED is about as good as it is going to get in terms of numbers in a single instance, the system currently uses peer to peer in the various instances, that means that one of the players in the instance is actually hosting it for everyone else in their group.
Clearly, things like grouping are being worked on and refined, and we will get wings in the New Year that will enable mission and bounty sharing within a group. However, this claim that it is not possible to group is nonsense, I am able to regularly group up with four friends, we fly around in resource extraction sites and at nav points helping one another, and generally having a laugh. It is not always perfect, but it is doable, and it is fun, and we are looking forward to getting involved in the conflict zones together this weekend, trying not to shoot one another as we compete for kill shots.
Frankly, I have to wonder how many people complaining this is not a real mmo or that the current 32 player limit is not good enough have actually been in an instance with as many as 32 players. Conflict zones can become complete chaos, there are not just players on both sides there are ai there too, and the radar is generally a complete mess. Any more ships, and folks would complain about not being able to select targets effectively, radar ranges, shooting one another or whatever else they think an issue.
Folks are just going to have to deal with the fact that in the absence of subscriptions, there will be limitations on what is possible.