What if a single smart contract was an address space where lived unlimited functionality and data. An entire universe at a single Ethereum address. A universe that can be built incrementally, bit by bit, by you and your friends and someone else, collabora

Could be, but EIP2535 Diamonds is a general smart contract framework that has quite a bit of flexibility to build different kinds of systems that behave differently. For example a large immutable diamond could be deployed. Or a diamond could be incrementally developed on-chain and one day made completely immutable -- or just parts of it are immutable.

Another aspect is the support for transparency and documentation. No matter how many upgrades are done a trail of standard events are left behind that point at all the verified source code of all the upgrades so the past and current state of diamond functionality can be publicly viewed and verified.

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