not true. because you literally could sit and watch people run back and forth between where the zone walls are now. limsa was famous because of the window on the stair well at the time which is still there on the side that was never filled correctly becuase you can still the outline for it because you can watch run and up down the stair well... the city states were one zone it was atrocious because of the stupid high polycount vases for example they had and the use of retainers to sell before they added the market area across from customs in limsa which is now sealed off.
the zoning you are talking about came when you left the city though. the slower your computer the slower the load. but yea cities were one zone. the only time it loaded was entering the city and leaving. it was pretty fluid until the hi poly vases and the retainers came into play and there were plenty of videos showing the difference between a low, med and hi end computer the difference.