Pretty sure it doesn't work. The rooms in space analogy is correct. You don't even need to spend hours testing it by flying to another system. The same principle is in play (so it would seem) with stations. Just drop out of SC 1.5 or 2 million clicks away from a station, then fly to it. When you get there.... nothing... because the "room" or instance hasn't loaded. It won't appear until you go back into SC, then drop out when it tells you to, which causes the instance to load.
I disliked this the moment I accidentally discovered it. I submitted a beta bug report ticket, but now I feel a little foolish for having done so. It is clearly not a bug, but a design issue, and perhaps simply a beta limitation.
This is a mechanic that may simply be necessary due to current technological limitations, although it doesn't seem too difficult a concept to set a load distance that no matter how one reaches it, causes the instance to load... hence maintaining the illusion of continuity and keeping one small piece of immersion intact. I can live with it if they can't, or aren't, concerned about changing the way it works. An easy enough thing to role play around considering we are playing with ideas like FTL travel, hyperspace drives, etc....
Regardless, within fifteen minutes my hopes and expectations from watching the many dev videos had begun to get a little dose of reality. =\ I sincerely hope stuff like this is just beta limitations and that the other, even more glaring immersion breaking omission is just not turned on yet as well because it serves no purpose for the engine testing they were after.
The other omission is of course, the state of the universe's "life" in general. It appears that the "universe" is not, in fact, living. Nothing, it would appear, except the player, transacts between these "rooms" or instances. No real cargo moves, no characters live, no stations, or empires, or fleets interact, nothing at all. Again, these things may have no bearing on what they are testing in the beta, which might explain why they didn't want them "on" cluttering up the feedback, but it still left a sinking feeling to realize it none the less. Especially now that I've read the newsletter. To go from dev videos telling anyone who will listen about this living world, to the announcement we got a few days ago.... worries me.
Sorry, to devolve into the same old "what are they going to release" whine... It's just on my mind, enough to cause me to post on a forum... A thing I do not often do.
Take care commanders.