As I understand it, the basic Spatial OS idea works something like a modern multiprocessor cache. You have objects, which are accessible from any machine in the cluster. Local access is much faster than remote access, of course. So, when there are too many remote accesses to an object, the object is serialized, shipped over the network to where it is being accessed the most, and made live on a different machine. Objects that are only being read can have copies in multiple regions, but a change to any of the copies must invalidate all the read-only copies. (Yes, something like that is how shared memory multiprocessor caches work deep inside.)
For this to work, the game code probably has to be highly parallel, because you're going to block waiting for object moves over the network. So such blocks must not block the whole game loop, just one thread of it. Which requires highly parallel game and physics engines. Which, at last, do seem to exist.
This is a reasonable enough architecture, but does it really scale? They have demos with huge numbers of distant spaceships, but that's easy to do. As far as I can tell, Spatial OS maxed out with 1000 users on the ground in Mavericks in a one-time demo. They weren't all visible to each other, though. Could that approach handle Second Life, with 30,000 to 50,000 users in a shared world?
The Second Life approach, fixed sized regions that communicate at the edges only to move game objects and avatars, breaks down when too many users are in one region. The system only runs well with 20 or less users in a region, because the server has only one main thread. It's often run with more users in a region than that, and it slows down badly. Second Life can't have crowds. Which is a lack. Everybody wants crowds.
10,000,000 users on a huge plain waving glow sticks at a distant DJ - probably not necessary. Fortnite did that in shards, and in one world it would be a lousy user experience anyway. (Although, Burning Man in VR. Maybe someday...) 1000 users in a big club or a busy shopping area or assaulting a D-Day beach is a reasonable goal for now. Could Spatial OS do that? Has anybody pushed it hard enough to find out?
Finding out if this approach scales is valuable. If it works, it's going to be like physics engines - soon, everyone will be doing it.