Earlier quoted context omitted.
Unity and dynamic asset loading are not happy bed fellows. Not Unreal Engine 4, either. UE5 has "asset streaming" and "open worlds", but mostly static and loaded from a local SSD on a Playstation 5. That's working nicely. Asset management from the network is the real difference with seamless, modifiable virtual world systems. Otherwise, it's a minute of "...LOADING..." when you move to the next area. You need clients…
But why does it have to load dynamically, when you can just package releases instead?
It's also very hard to depreciate old systems. The game is 18 years old, but there were real money transactions from day one. If a user bought something ten years ago, they expect to still be able to use it!
You can imagine a clean-sheet design that does away with all this. Make the world static, player avatars pre-baked. Most SL competitors do this. (Facebook Spaces, Playstation Home etc) This gives you better FPS and a much more consistent aesthetic, since all the assets are made in-house. But now what? The classic Metaverse problem, there's just not that much to do. Cutting features from SL makes this worse, not better.