@Hodgman I think I'm making some more sense out of your link today.. still not sure, but I think you're trying to say that I should be weary of the overhead I'm creating.. Make sure that my solutions aren't creating more problems.. that kind of thing.. Gotcha.
I think I'm smelling your fire.
I get that any change from a "single threaded" approach to anything WILL add overhead. I've accepted that fact. I'm designing my system without a "central simulation" because the overhead of splitting that kind of mechanism into many different parts would be almost impossible for me to engineer around. Instead of the single central simulation, there will be many nodes on the network that can interact with players in real-time. The clients will be the physics processors and collision detectors. The servers will orchestrate synchronizing the interactions between game entities and make corrections to game entities that risk breaking the illusion of multi-player interactions.
My game/system is a different kind of thing. I'm not just trying to mimic or improve on existing systems/methods, I'm trying to engineer a different one.
And I'm probably a bit naive in some of my approaches, and that's fine too, because I'm learning lots, and it doesn't take me long to re-gear when things don't test out the way I'd like.