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At least that is how I understand it. If you have more control over what will be seen (either in a single player game, or an instanced or zoned multiplayer game), you can better benchmark your graphics to ensure they are always at a targetted FPS.
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Thanks for the in-depth explanation.
I guess that leaves the question then, why did developers move away from zones? This is going to be subjective as hell, but I didn't mind zoning, and I would gladly trade zoning for huge graphical performance - especially on raids.