So what's really going on with this simulator and the persistent requirement to be connected online - servers really need improvement, or the sim needs to change

It already does so - Azure has a CDN. The ugly secret no one wants to talk about is that some ISPs will throttle traffic from certain CDNs to their customers as a bandwidth and capacity management tactic (among other things - there’s also an interconnect fee that makes this all a profit / revenue generator). This is undoubtedly true in CONUS, but even more so overseas. That’s why player countermeasures like using a VPN (esp. one that can emulate a foreign location origin) suddenly nets a user an amazing boost in connectivity speed and bandwidth to MSFS servers. And that is outside of MS Control.

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