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In practice, for most classical RPGs you can get away with simulating each of your PCs and NPCs as a box (parallelepiped), or as prism (say, hexagonal or octagonal one)

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Mathematically speaking, without Interest Management, the amount of data on our servers will need to send (to all players combined), is O(N^2). Interest Management reduces this number to O(N)

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For fast-paced games, there is one big problem with the flow shown on this diagram, and the name of the problem is “latency” (a.k.a. 'input lag')

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No, better bandwidth doesn't necessarily mean better latency

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From the 50'000-feet point of view, 90% of the differences between modern mainstream programming languages (as they're normally used - or better to say, SHOULD be used - at application-level) are minor or superficial.

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On the server side (unlike client-side) protection from bot writers is not an issue (as server-side code is never exposed to players)

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With 'callback pyramid' it is not easy to express the concept of 'wait for more than one thing to complete' , which leads to unnecessary sequencing, adding to latencies (which may or may not be a problem for your purposes, but still a thing to keep in mind).

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Don't even think of converting all of your code to a so-called Continuation-Passing-Style