MMO-Like Quake Is Possible
An anonymous reader writes "OptimalGrid is a self-contained middleware designed for developers to create grid-enabled parallel applications without themselves becoming experts in grid or high-performance computing (article). The Linux compatible middleware now includes automatic distribution and provisioning on to Grid nodes. See how the first release of Quake II was made massively multi-player [pdf] by running on a Grid. Get modified Quake II from Sourceforge to run with OptimalGrid and let the massive Grid games begin." Update: 09/19 16:12 GMT by Z : Marked the pdf as such.
Just because they didn't make a world that's 100x larger it doesn't mean that it's not possible now. The PDF indicates that the world is partitioned into discrete pieces and server partitioning is done automatically - and players are passed between the servers on demand. IMHO, it seems exactly like what you're saying.