I am saying that faster game speeds increase the iterations and processes that are loaded onto the CPU, therefore inducing 'CPU-caused-LAG' into the game.
Most of your "examples" are consequences of scalar variables affecting the gameplay, not a higher iteration rate...
A case in point: on faster ship speeds, ships simply move faster (scalar variable)...sure, this may result in SC surviving longer or shorter....it may result in ships moving in and out of ability/weapon ranges more often....but the iterations, the frequency of "checks" that have to occur to see if X is in range of Y etc. would not be changed...ships have to check to see if targets are in range of their weapons regardless of whether the targets are actually in range...that they move in and out of range more often does not affect the frequency of checks, only the actual results of those checks over time....
Things like the number of pirates, trade ships, etc. are again only indirect consequences of game speed...faster game speeds may allow players to maximize trade or see larger pirate fleets earlier (via more available resources to put on bounty), but the contribution of each individual pirate ship and each individual trade ship is not affected by gamespeed....
In short, gamespeed may affect the number of assets in your game due to differences in income, construction rates, etc....but, the individual contribution of each asset is independent of game speed...the gamespeed settings are merely scalars applied to in-game variables like income rate, ship speed, etc...
If you take the same sized map, the same fleet compositions, the same big battles, and start duking it out, on Faster game settings with the same situation it lags. On Normal game settings in the same situation with our equipment it does NOT lag.
Yet for me the lag is independent of game speed...using task manager, I can verify that the CPU resources used by Sins is independent of my gamespeed selections....
If what you say were actually true, then what is the iteration rate for a game that has mixed settings, say faster income but slow ship speeds? The game engine is not going to change the rates of individual processes because of your settings........only a universal game speed changer (like the "gamespeed" 1x/2x/4x/6x/8x option) actually is going to control that...