Ok, so that bit about having spoke to a board member and three developers is interesting. How is he in a position to do that? So, naturally it has to be taken with a pinch of salt.
However, the part about CR not wanting to backtrack because its his reputation is believable. It also ties in well with what some of us think about how CR works, (as stated by Spector and Gariott) which is management by decree.
CR never even consulted with anyone whether server meshing was possible (although maybe with his yes men who would say yes regardless), he just declared that is what they would do and then made it the devs problem to figure out how to do it.
It would tie in with CR repeatedly talking about it like its coming soon, that its all doable, even while TheAgent was saying internally at CIG they already knew it wasn't happening as described.
Devs presumably, not wanting to tell Chris "No" kept coming up with excuses. Oh, we need iCache first, on, iCache isn't enough, we yTables or something else, and so it continued until they managed to come up with something that would temporarily mollify Chris, the Shards thing, which one day, if they keep working on it, maybe will somewhat approximate what Chris wanted (Narrator: it won't).
Pure speculation of course.