I tend to think it's both: at first physicalized - badly implemented because of reasons (limited time and effort, just a hacked proof of concept, CR doesn't understand physics but wanted it that way nonetheless) - then shoehorned in a more standard "fake-y" way so it can work with the constraints they never forethought all the while trying to keep the "no compromise" motto of Chris Almighty.Except we know the elevators are faked and don't travel like elevators should.
Let's add to the mix: years of layers of badly commented unmaintained code from people not at CIG anymore, workforce diverted to more important/fluffy tasks, networking issues, the 90-90 rule... I can't see how it can end well, if it'll end at all.
And I assume this mess doesn't just apply to lifts.