Is that what is happening though? If I am moving at 30km/s in supercruise and another player is moving at 100c are we in different sized playing areas whilst simultaneously in the same playing area?
The speeds shown in your ship like 100C are the speed you would be traveling, if you were actually traveling faster than light (C).
But you're not actually doing that. You're not "traveling" from Point A in space to Point B in space. Instead, your Frame Shift Drive is folding space around you, so you drop out at the same point as if you were traveling FTL, but it's done through a trick of space-folding. The speed readout is just a convenient reference for how much space is being folded at a given FSD throttle setting.
Or something like that. I'm not up on the exact lore here, but I think that's the rough idea.
I assume that's why it's called the "Frame Shift Drive": because it changes your relativistic reference frame.
Right, and that also explains why you never actually have to move into an orbital trajectory when approaching a station orbiting a planet. With the FSD you don't worry about that, you just pop into the station's local rest frame.