Had a new idea, one regarding lag and one regarding a game idea.
Lag: To cut out the lag, there would be pre-made provinces that towns and cities would start up in. Each province would be maybe six times the size of Bedroom, making it square.. In between these provinces would be walls that are just high enough that you can't see over them (Jetpack would be cut out, and if you try and fly over you either get shot down, or you run into an invisible wall) . To pass from province from province, you would follow the road that passes along the wall until you come to a gate, you open the gate, and there is a small lounge. A loading bar appears at the top. You can't pass from the lounge until the next province loads. While you're in the lounge, you can exchange currencies, buy food, and update permits for in the next province.
So to summarize, each province is more or less a server within a server, and when you travel in-between them, you get stopped for pre-loading while you prepare to enter the next province.
(roads and highways would be handled similarly, instead of a lounge, it might be a toll-booth?)
Game idea:
One (or a clan) could build a small building and pay a fee to set up a shop. They could then add their own weapons, cars, and items, into the game and people could come by and buy them. Unlike the current way the vehicle, weapon, and item system works, instead of simply spawning the item, a shop would have to pay money to get each unit manufactured (which would take time) and you have to store the item within the shop, or run the risk of it getting stolen.