I'm sure for those of us who haven't spent rent payments on ships, there will be a satisfying curve to climb ship wise, and probably a decent curve to climb with the pvp slider as well. I don't imagine that this game is going to feel anywhere near as good as eve does from a player run galaxy setting though, as always being in some form of instance and being able to hide from players definitely defeats that.
Ok let me set you straight on instancing. You could watch some videos but I'll sum it up super quick.
The PVP slider cannot be turned off it goes from a factor of 1 to 100 not 0 to 100. Furthermore it's a suggestion to the instance manager not a requirement. If you are mostly mining and minding your own business in a very busy area with dozens of instancing spinning up yes it's possible you may not run into another player intending to pvp but you still might. It can happen and the instance manager can decide to do that instead of sending NPC pirates into your instance. This is done on purpose both in space and on the ground to always have an air of danger lingering just there. It's a designed gameplay mechanic to get you immersed but not flooded with short bus kids. Despite your passivity you may do something the game decides a pirate may wish to interact with and guess what? You go on top of the list to have a pvp player enter your instance. It's not random but geared more toward your actions. As actions should have consequence. A quick example could be you agreeing to smuggle drugs off world in your mining barge in a secret hold. Well there is a good chance someone leaked that and yes that's going to be an actual gameplay mechanic and that pvp player will get a job to hunt your dumb ass down. The intent is to have that happen. Not always but there is a chance. High risk high reward.
As for the actual way instances are generated they are generated as containers in conjunction with the zone system. One zone can be a planet. That planet may have a moon and an orbiting station. The moon can be it's own zone and the station its zone inside that zone. Inside the station zone are multiple zones that comprise of the hangar and other rooms inside the station. The hangar may have yet multiple entrances and rooms which all have their own zones.
Zones can spin up instances as players approach and begin to stream data to the players so you don't have loading screens. It's still in R&D but if it works you shouldn't be able to tell where a zone starts and where one ends as all data you require to see in your immediate area inside the next zone you enter is already streamed to you. The zones only interact between each other. For example the hangar zone will interact with the rooms inside it or the hallway just off it as well as the space directly around the space station but no more.
Ships are also using the zone system in conjunction with a physics grid system to allow you and your crew to move around your ship independent of the zone/instance you are in. Anyone outside of your ship won't have the inner parts streamed to them thereby reducing the memory required for each ship. Same for large objects like a Bengal-class Carrier. To anyone from the outside not intending to land or fire into the inside of the ship won't know what's inside of it and only the outer 3D model will load.
There is another system in place that allows interaction between zones which is most obvious when one ship strikes another ship. This is currently not in game but once it is, and is required for multi-crew, will allow streaming of internal damage as it is taken if required by you to see it.
So inside a single planet zone there could be literally dozens and dozens of zones and they spin up instances as players go through them.
We don't know the player limit yet but no org will be able to fill an entire instance. An instance will always have player slots left available for other people to join. That way you can have a battle with your enemies but you won't be able to join forces with another org and stomp another org 2 vs 1 when player numbers are equal on all sides. The intent is not to allow anyone to exploit the gameplay mechanics to do something silly like that.
Basically if you have a huge org and you want to fight it out with a little one but the zone doesn't allow it because they fit into one zone and you don't you will simply have to come at them in waves. It makes it far more fair and still gives you a massive advantage in large battles.
You will literally get to see the first iteration of this at Gamescom in about 2 and a half weeks.
Sorry I couldn't simplify this but it seemed like you needed examples to understand the concept. Hope I wasn't being presumptuous.