The problem is that there are currently code limitations to how large a server can be, though. Even on a NASA supercomputer reconfigured to run a StarMade server, after you hit somewhere between 25 and 40 players the server will probably slow to a crawl. The game doesn't seem to make good use of CPU process threading and whatnot.
One of the biggest reasons for leveraging multiple threads, is that too much code is often tethered to blocking IO, which limits concurrency by increasing deadlock probability. With Java (and Schine's) use of NIO, the game's single thread server instance has not been observed as being a profound performance-hindering issue.
For instance, I've seen pilot counts peak at almost 30 on our public server, with no linear correlations to system load or server (process) latency.
The obvious exception is if someone decides to fool around with large collision or logic bugs, but then those are essentially unresolved deadlock issues...all bets are off.
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It is a matter of self-interest. The admins on a server that is considered central to the game will be interested in promoting the game in the very best light. Griefmins, on the other hand, do not really have the game's best interest at heart....
What I hear you saying, is that you fear pilots would essentially rage-quit because of bad experiences on an independently run server. I have no doubt this has occurred, although I fail to see how one (or a cluster) of centralized servers is going to resolve the underlying issue.
After-all, when I get food poisoning at a sketchy restaurant, or a store sells me a junk product, I don't boycott all restaurants nor do I stop shopping at other stores. Instead, I'll pay closer attention to reviews of a new restaurant/store/product, adjust my standards, perhaps post a cranky review myself, leverage consumer protection laws if needed, and I ultimately don't return to where I had the bad experience. My proposal was in support along those lines: help educate and enable pilots to make more informed decisions.