How can that be a thing of what you say is true?
Though, two through four can usually be handled without issue, provided the devs know what they're doing & architect the engine correctly. (edit: And keep the scope in check, which ultimately is the responsibility of the leadership.) Unfortunately, this appears to be where #1 messed things up for them.
definitely not trivially easy, but impossible!? nah.
Star Citizen's "Subsumption" and Quanta system is very similar in goal, and if it goes to plan will be one of the most engaging "AI population" simulations to date. It does't individually simulate every person in real time, but instead simulates a set of tasks and demands to be done, all the resource nodes, and an approximate population of simple entities carrying out those tasks, and when you spawn near said tasks, it spins up a "meta NPC" to represent in full 3D space, an agent of one of those simplified population entities.
So for example, you fly to a mine site, the system knows there are currently 40 miners here mining aluminium to take to the factory, it knows at what point they are at with their tasks, and so it generates 40 NPCs to represent those miners. At that point you can interact with them and influence the simulation, say steal their ship and minerals. That updates the simulation but the simulation need not care about the specifics of the NPC. Just that he has no minerals and he is no longer capable of mining.
You fly away with their ship, and all the other NPCs return back to simplified entities in the graph.
In regards to Star Citizen being vapourware, my recommendation would be to take a critical look at their timeline and what state the game is currently in and ask if you could really see it going any quicker. It's a controversial project, but I think calling it vapourware is just the industry being dismissive.
They had to build the team from nothing, now 700 people, and they are building two games not one, both are pretty groundbreaking in features and scope. That considered it is actually moving pretty quickly. They have already delivered a bunch of those groundbreaking technical hurdles to players. Of course the whole thing could implode yet, but it's looking good.
They deliver consistent progress reports and updates to the playable alpha, which has enough content for me and friends to play regularly for fun now. Updates every three months is the schedule, plus any in game content events that get run.