I do believe that the initial pvp slider has gone away. I think they're more in favor of the EVE system where core systems will be safe and progressively get less safe the farther away you are. I'm sure there will be nullsec places peppered inside the core systems too.
But thats the problem: you 'believe' and 'think' they may have dropped this and favor something else. Why dont we know stuff like this for sure?The 'open development' thing is partly the core of SC, with people being bombarded with vids. But when it comes to core game mechanisms we're left guessing. And when the 'mvp' will include a handful of systems, how will such a system work?
Getting thousands of people in same instance is peanuts. It has been done and it can be done on server - issue is money. Update speed however is another topic completely, amount of traffic between server and client will reach unmanageable levels easily.
Well, I am assuming that they wont just 'be in the same instance', but will actually do stuff. The record is indeed PS2, and even in such a rather simplified setting there are many compromises being made to make that happen. It just doesn't match the 'best/deepest space sim' thing CR assures is will happen at some point.