It seemed like you were slowly testing towards realising the game is P2P (As someone said above). All the "Dedicated" server does is host the world/save, and keep the connection open, that's it.

All the players form a connection web where each client will send its data to every client. All the clients together maintain the world you're all playing on. If someone is having a problem then everyone has a problem. This is one of the reasons the multiplayer is capped to 10 players.

It would be great if the game moved to a more traditional server model for server/client but that's going to be a lot of work and it won't happen anytime soon if it did.