After thinking about it for a bit. I think this would make a lot of sense. In regular play I have never seen more than 4-5 other players in a given instance. Supposedly the engine can handle up to 32 connections per instance. With the current player density this would only make better use of that capability. It would allow for supercruise to have smooth transitions at all times, and only hide matchmaking delays behind the witchspace jump, which is longer and more infrequent. And it would allow for NPC's to be more persistent, instead of supercruising into a system that is completely empty for 20-30 seconds while the server re-populates it.
It would also in theory allow for signal sources to be more persistent as well, possibly even revealing signal sources containing other players that are not part of your wing. Although in practice I don't know if this would be easily implemented.
It would also in theory allow for signal sources to be more persistent as well, possibly even revealing signal sources containing other players that are not part of your wing. Although in practice I don't know if this would be easily implemented.