Well it specifies virtualisation (not just VMs) and isn’t so much an assumption. Once a hypervisor is in use, virtualization is being used. With current generation hypervisors, CPU intensive operations are not negatively impacted in a significant way. I will happily post public papers tomorrow if you want.
And there is no need to assume CCP use virtualisation, the devblog for TQ Tech III clearly shows ESXi hosts:
Yes, although it’s not handled on a single server now. It’s single sharded (ie. the database is a single shard), but it runs on multiple servers.
But yes totally. Continued hardware developments and changes in the code base is the long term solution. It’ll never truly be a solution as such, because there will always be a physical limit to how big a fight can get, but the ceiling will continue to increase while CCP continues to maintain and develop the game.