Note: In regard to sci-fi expanded universe, this just showed up in Casual: https://www.roleplayerguild.com/topics/168151-the-parallel-campaign-an-expansive-spacefaring-rpg/ooc. Looks pretty darn promising.
The point isn't to "resolve" either of those things (and at the moment, I don't care enough about the concept to even consider those points of logistics), more to provide a structure that is easier to follow for outsiders, managers of such a context and people within the world itself. It is better, in my book, to try and manage fantasy characters in a setting where relative power can be more easily defined and understood when fantasy typically has specific connotations and expected power levels, as compared to trying to manage an all-encompassing setting where armies with swords and otherwise somewhat primative equipment can meet plasma gun toting kill teams with armor suitable for the thirty-first or what have you century with a pretty clear anticipated result.
I don't see how that framework would resolve the issue of plot inconsistencies, or players abandoning plot-integral characters. If we went down this route, wouldn't we need a lore-keeping and plot-managing staff member for each domain?
Even if such positions were created, what would happen if the absent players return to claim their characters?