Yeah, I understood that. That's why I said "Bethesda is forced to create separate world-spaces to accommodate weak hardware like consoles."
The problem is that when you have one world-space, with a lot of AI going on, a low-power CPU gets quickly swamped, and you'll get intolerable lag. So they break it up into separate world-spaces, and limit the number of NPCs in each world-space. And, even then, I'm betting you see some lag in certain locations.