Earlier quoted context omitted.
> 99% applications, if you don't do anything stupid you are completely fine. This is a common misconception. Or "anything stupid" is quite broader than you think. The main issue with FP arithmetic is that effectively every calculation incurs an error. You seem to aware of catastrophic cancellation, but it is problematic not because of the cancellation but because the error is proportional to the input, which can wild…
I work on financial risk calculations during day and embedded control devices after my official work hours. My controller running moving horizon estimator to simulate thermal system of the espresso machine and Kalman filters to correct model parameters against measurements runs 50 times a second and works fine for days, thank you, using floats on STM32. I have written huge amount of embedded software over past 20 yea…
There are also many classes of softwares where FP inaccuracy is simply no problem---such as 3D rendering where the worst FP error is probably z-fighting. Not every application of FP requires "correct" calculation.
> What newer games do, they allow client and server run simulations independently even when they don't agree exactly, and then reconcile the results from time to time.
That's not what "newer" games do, it's what games that can withstand the trade-off do. In particular if the outcome of a particular action is crucial to players you can't reconcile that (projectiles are canonical examples); once the player observed the outcome it's done. Reconcilation thus typically happens in the animation level, so that it can hide the delay until the outcome is observed. This does not actually require the simulation---an simple interpolation is frequent AFAIK---so your point is irrelevant.
There are several genres of games where the lockstep simulation remains pretty much the only way, and thus FP is discouraged. Not because FP is expensive, which had been false for quite a long time anyway (no game developer uses the "fast" inverse square root algorithm any more).