And yet again...not one word to say how or why I am wrong. Just a straight assertion. CIG and Chris Roberts has described the instancing process and their description of how it works in Star Citizen doesn't match your assertion.
Right now...the limit is 24 and CIG instance technology doesn't bypass that limit through load balancing.
CIG should be able to improve on those numbers...but with the best will in tne world, they are going to have to accept limits. Even if they could implement an instance with thousands of ships, few players would own PCs capable of rendering them. Bandwidth limitations alone not to mention server costs and capabilities are likely to be huge bottlenecks in this vision...more so since there can't really be a ship limit as you jave to assume x number of players regardless. 5 players on one ship are potentially going to generate as much information as 5 players with 5 ships.

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