I still don't understand what is Cobra doing now that other engines can't do. Why is that so "special"? And where do you get the info that UE can't do such things (genuine question) ?
It's the scale at which Cobra can do it. I'll use UE for my examples, as it's the one I have the most recent experince with. As you've seen, UE can do large terrains, but it won't wrap that large, beautiful terrain around a planet that is one of several hanging in the same system - the way Cobra handles LOD's is a little mad. Now add a moon, a nicely cratered one. About now, UE will choke, it's not optimized for this kind of use. You can rewrite the code to optimise it, but that kind of defeats the reason for using an off the shelf engine. And this is before you add flight (will require work), trading (more work) and all the other game stuff. Never mind scaling it to 400 million systems. UE has grown from the FPS-centic engine it once was, but it's roots are still very clear.
But it really boils down to scale. Cobra was written from the outset to deal with a game universe this big, UE wasn't really and would require work to make it so. UE has examples and base functionality included for much of what is in Elite, but again, scale is the issue.
I've also ignored the need for the devs to all learn a new set of tools, a new dev process and all that goes with it.