I appreciate the constructive criticism. Please keep an open mind to this.
Before going into answers let me give this example. Someone tells me about this cool club in SL to check out. I teleport there, fly over to the club and cant get in. The texture data isnt downloaded yet, I'm waiting a long time to even find out where the walls and entrance to this place is. And then for an even longer time when going inside things are still popping up, when you get close to a texture a more detailed one needs to be downloaded from the server and that takes even longer to wait for. I try to show this off to friends and it takes forever, they're bored by the time its all over. ( and don't say these people who want instant gratification shouldnt be playing SL, Linden relies on a growing user base to continue coming out with new versions for you to enjoy)
From: someone
Let's say I hack my client to upload random data to anyone that connects. This amounts to a DoS attack on them and an unknown third party, as their client then needs to download the data twice: once from me, once from someone more trustworthy.
If a client receives data from another client that does not match the hash given by the server, the client reports the IP to the server. Server side, for example, if 10 different hosts all report the same host giving bad data, the server stops giving the bad host's IP address out. This allows room for simple mistakes in protocol and also verification of a bad host from multiple sources.
From: someone
Let's say I hack my client to upload specially-crafted packets to anyone that connects. SL is known to crash when it recieves data corrupted in certain ways. This is a more-effective DoS attack, since it uses less of my upstream bandwidth.
First of all data transferred between clients should be encrypted with a key the server provides. So you're not simply able to create fake packets. Even if you could, throwing out malformatted packets is a very basic function of any network application.
From: someone
Let's say I hack my client to tell me the IP address of everyone who connects. I can now run a DDoS attack on them using a network of zombie machines. This is even more effective, since it uses almost none of my bandwidth.
A network of zombie machines you control? This isnt a serious criticism, anyone with a network of zombie machines could ddos anyone else.
From: someone
Teleporting into a server, my average download speed is 1000 kb/s. This is about a third my connection's max, and considering that SL uses UDP, I wouldn't want to go much higher, because of problems with lost packets.
Download speed from the server depends on many factors. What I can tell you is Linden isn't going to support 1000 kb/s for thousands of concurrent users and continue charging $10 a months

There is a breaking point as the system grows where b/w per user available from the server is going to be sacrificed. No MMORPG out there today uses as much b/w per user as SL does. All the objects come on CDs, and updates come out once in a while. There is no continuous streaming of unlimited data to users like in SL.
From: someone
Further, if I max out my upload bandwidth (256kb/s), my download bandwidth will be greatly reduced, since I can't send out packet requests very fast.
and
my connections usualy just dies if i upload near the cap. Very uncool.
An important property of this system is if you take SL as a whole, the number of people flying and zoning around at the exact same time is small which gives them a very stable large base of users to stream from. If this system were in place today you'd find the upload bandwidth required pretty low, as a fail-safe the max u/l can be capped.
From: someone
p2p is not suitable for any dynamic data. It's bonuses lie in data that is not likely to change, eg textures, and for that LL has plenty of spare bandwidth.
P2P is perfect for this, take my club example, 10 people are already there, 1 new person comes in. Imagine how fast it would load for that person if the 10 people with all the texture data already loaded helped out with the streaming.
From: someone
Prims, and other objects which can be influenced by script or avatars, is instantly thrust out of the static catagory. Also, managing ala bittorrent the sheer number of clients, which portions they have, who they are, etc. would have a major cpu drain (more than what is saved by bandwidth gains).
Prim data, script data is tiny compared to texture data. See my previous post, this is not BT, this is a simple P2P file transfer system, CPU usage is nill, I've coded them, I know. I read the post you directed the reply to, that person had a very shallow understanding of P2P.
From: someone
Insufficient demand on specific items to gain bonuses from using the tracker/node model. (your only downloading XYZ texture for a very brief period of time, plus you are only downloading the LOD version of that texture), most people wont be downloading XYZ texture at the same time, let alone the same LOD level.
If the server doesnt know of anyone with the file, the file is d/led from the server, like it does already. If the client requires a LOD higher than what other clients have it is d/led from the server (and then is available for others)
From: someone
Implementation time, changing this would require seriously modifiying the client protocols. Not about to happen soon.
Yes it does take time to develop, is it worth it? I think it is for both the company and the user. Among all P2P systems I've worked with this one has the most simple design.
From: someone
CPU and Bandwidth losses due to coordination, would most likely outweigh any potential gains.
I can assure you this systems cpu requirements would be next to nill. Rendering takes real cpu power. Like I explained previously, cache supply would always outweigh the demand, if effect this would require not a lot of upload bandwidth per user. (factor in a in tray u/l system while not in SL and its even lower)
From: someone
Speed/Response Times, a centralised download can begin at once, a distrobuted one needs to synchronise with each item in the swarm before commencing. For lots of small downloads, this isnt suitable.
This is interesting, the time to get a texture over P2P might be a couple seconds slower due to request response. But because they are done simultaneously for multiple files it is much much faster than get one texture, get the next, get the next, from the SL server.
From: someone
Most people have asychronous connections with very limited uploads, this means it's going to be slower still.
Covered this up two paragraphs.
Keep the concerns coming, and I'll keep working with this idea until we're on the same page. I'd love to zone into a popular place one day and have everything pop up immediately and I'm sure you all would too. It can be done.