Can they? How would this affect the actual queues if the connection now has to go from their authentication databases which likely are in the same building or at least campus as the other servers, out to a remote lobby to wait, then handshaking back to the data center and world servers. The way the servers work with the login and lobby servers would have to be changed. Those changes would take time to write, test and inevitably implement.
This would introduce new errors, new problems and new calibrations necessary to tolerances like timeouts and error correction. Security concerns are also something to consider. Rather than authentication being mostly local, it'd now have possible vulnerabilities that weren't present before.
So while eventually POSSIBLE.. the question of feasible is still up to SE, and they have said no.




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