If you've worked with Unity before, you know that they're a very developer friendly organization. Furthermore, the TOS changes are merely for show. The fact is that Improbable has been breaking the TOS from the get go, (putting their wrapper around a one time use Unity License, then selling that to multiple people).
Improbable doesn't sell Unity to people. All Unity developers who use SpatialOS use their own copies of Unity. Improbable explained how it all works here.
@logain From what I understand, Fractured's code would pretty much have to be rewritten completely if they were to switch engines.
I don't know what Prometheus is planning to do. He's still very busy trying to figure it all out.
If Fractured were to switch to a different engine, it would set the development of Fractured back by 2 years because the devs would effectively have to start over again. They also don't have much experience with UE4 so they would have to learn how to develop with it. This is obviously something they don't want to consider unless they really have no other choice.
@staticsprite Prometheus is working on a forum post to explain everything in detail. 
Speaking of the devil: https://forum.fracturedmmo.com/topic/7716/unity-has-blocked-spatialos-what-s-up-and-what-it-means-for-us
@rutsy Good catch, I shall inform Prometheus about it.
@tharles Assuming you mean the physical location of the server: https://fracturedmmo.com/going-worldwide-regional-servers-localization/
@kralith I have no idea why it works this way. 