There was an exploit in eve sort of like this. What you did was start warping toward a planet on the far side of the solar system and then kill the application as you got close to it.

The effect was to allow you to sling shot past the destination at warp speed, and if you logged back in at teh right time (seconds later) you could setup a waypoint far outside the outermost celestial body.

(Normally you can only warp to planets and moons, etc... you can't just pick an arbitrary direction and engage warp).

That problem is not because of the trade off. The problem is that the server believe the player's client when it provided an updated location. The 'correct' behavior in this case would be that the server resyncs the client, and the player observe's his ship jump to where the server thinks it should be.