The limitation is more about the number of players we can have in the same area—if you had a bunch of players equally spaced around the globe, I'm pretty sure we'd saturate the Ethernet link before running out of CPU on a big (say, 32-core) VM. The CPU cost (and outbound network bandwidth) of a player scales with the
square of the number of other players who can potentially "see" them.
In my scalability testing, we could handle upwards of 1000 players in the same 50 nm by 50 nm square on my 8 core dev workstation. That's pretty far beyond the limit of what would actually be _fun_ to fly the sim with. It becomes pandemonium even with 100 planes in the same area. We could easily do a dozen pockets of 100 planes in the same area even on our current 8 core VM.