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You say it gets worse in space battles, well you have your CV, plus your friends 3 CVs, plus the NPCs ships, plus any space based POIS being rendered in and out as you move around the play field .... Takes a toll. Watching various online videos, I've seen servers crash due to the amount of stuff being rendered on screen. EGS is very CPU intensive because of all of the above. All the other games you mentioned are not voxel based.
One last point, the game also, for some bizarre reason, uses a single write database in the background. Fine for single player, but not so much for multi player usage. This also causes a bit of lag.
So basically I guess this answers me question. If everyone else doing co-op is experiencing rubberbanding, then it sounds like there is nothing much more that I can do to tweak performance on my side except to get myself a Grey Super Computer .