I am not too worried about whether it is technically possible, but I am perplexed at the thought of all the assets FD would have to create to make it feel alive and real.
Personally I think that FD should not try to give us free access to entire cities, but make use of Hubs with limited accessible city areas.
Fundamentally this is a spacesim and if they can give me the illusion of being in a huge city that would be more than enough for me.
Like others said I would already be very happy if I saw npc walking and driving around current planetary stations.
I think this is almost certainly the way they will go.....and will even be able to explain it-in Lore terms-by the fact that no major city is going to want Aircraft Carrier Sized ships constantly zipping across their airspace.
I believe we will see a largely "cookie cutter" approach to city-styles, with slight variations mostly based on economy, population & government type.....which is more than sufficient for my needs.