Not necisarrily true. Freeworlds puts cruise at 900m/s, and its comabt and movement system is just as good.
I wouldnt say on the nearly as large scale as proposed here, but a larger scale in general seems liek a good idea. The only issue is stress testing it with the server, each connection, and supporting up to 200 players at any one time.
Its a very good concept, lets see if we cant work it in.