Found what I remembered, the post being by one of our own and then confirmed to be basically correct by Mike - http://forums.frontier.co.uk/showpost.php?p=100538&postcount=326
Yeah, that's what I thought - it sounds like P2P, but with an arbiter.
The data amount is the same but the distribution is different.
True; it seemed to me you were saying it was the same amount of data, but that's clearly not the case.
The point is that the limit of 32 isn't really that dependent on the networking model, it's mainly on the bandwidth of the players involved. Under a server/client model, clients only need about half the bandwidth, but the server needs a ton more; if you don't have a player with high bandwidth if your instance, the standard server/client model simply won't do.
That's the interesting part .. suggests a Server/Client model right and not full mesh ?
It's more like a hybrid approach. It's still full mesh - the broadcaster disconnecting doesn't affect other players' connections with each other - but one (or more) will be tasked with distributing information like NPC/cargo position, giving instance states to new players, back-end server updates etc. Then should the broadcaster disconnect for whatever reason, another player will be selected to broadcast this information.
EDIT: Wow, I missed everything.