The "but game X uses dedicated servers" argument is a bit tired unless it's a large scale real time simulation with players interacting around similar design. Most real time simulations are designed around arena instances with limitations that well suited to a dedicated server model. Distributed instances is very useful for an entirely different kind of game.
There are very few examples of open arena real time simulation with MMO type design. Aces High 3 does have pretty large scale open arenas for example however in the case of ED you'd have to redesign massively to limit the amount of players in a fixed instance representing something like a system or remove the "infinite instances" possibility by stopping all game-play that involves interdicting or creating X numbers of connections created anywhere at any time.
There is no infinite instances problem in my proposal. Also no need to stop all gameplay since the game is already capable of switching instances between hosts.