They could just continue what they were doing last?
Yes, you could let that happen, but then it leaves NPCs open to client side manipulation. As we understand, CIG have too much at the moment that is client side, which is why its relatively easy to make hacks for SC. If it goes live in this state, then hackers will be all over it. They need to shift more to the server side, but the servers can't handle it.
But let's stick with client side NPC actions, extrapolating from what they think they should be doing (rather than obeying instructions from the server). It certainly has some advantages, but it can also result in different clients seeing different things. It could result, for example, in one person being in combat with an NPC while another doesn't see that, the NPC is just sitting down.
Again, we can also come to client side manipulation, where a hacker causes an NPC to attack another player. That client then sends data to the server that player B has taken damage. Player B doesn't see that but they see their health dropping. To avoid this, you've got to put in server side checks to see if a client is sending information it should be authorized to send. Again, putting extra load server side.
And remember, this game is meant to have a 10 to 1 NPC to player ratio! That's going to be a lot of NPCs for all clients to be talking to once you get a lot of players in an area (of course, this whole 10 to 1 ratio was a load of rubbish to start with, because they won't dynamically adjust NPC numbers based on the number of players playing. Imagine if you did get 100 players all on Stanton... you're suddently going to get 1000 NPCs all spawning there?).