The thing that's nuts about 'Static Server Meshing' as proposed is: It doesn't scale. Or at least, it doesn't scale well.
Like initially it opens up Pyro, but then they hit the player cap again. They can't really open up another system, and definitely not 100 systems, with that alone. (Because what happens if everybody goes to Pyro etc...)
So they need to do one of the following:
C ain't happening. It's either A or B.
Personally, I'd find instancing the best, imperfect, solution there. Getting locked out of a location just because it had hit a player cap would be fairly infuriating. (It's bad enough when you can't park at a station in Elite
). And forget having either dynamic or narrative events in a location. You'd just be queueing outside the fun zone instead 
Like initially it opens up Pyro, but then they hit the player cap again. They can't really open up another system, and definitely not 100 systems, with that alone. (Because what happens if everybody goes to Pyro etc...)
So they need to do one of the following:
- Block access to any location that has hit the player cap. (So Jump Gates prevent access to solar systems, and/or Nine Tails style quantum black zones prevent approach to system locations)
- Give in and use instances for locations.
- Uncork the miracle that is 'dynamic server meshing'.
C ain't happening. It's either A or B.
Personally, I'd find instancing the best, imperfect, solution there. Getting locked out of a location just because it had hit a player cap would be fairly infuriating. (It's bad enough when you can't park at a station in Elite