Actually, David Earnest (Old Dominion U) had a really interesting article on MMO- type multiplayer approaches to COIN simulation in the Journal of Defense Modeling and Simulations last year.
My own classroom simulation is designed around this idea of a large number of participant interactions. It works well--especially the sense of intersecting agendas and the imperfect information flows that it generates--but it's human moderated, and pretty much takes up 90% of my week when I run it. USIP is designing software to support that type of simulation (the Open Simulation Platform), into which you would then "slot" your scenario and setting. This is all text and basic chat, though--no WoW style maps and immersive VR environment (or, for that matter, Night Elf Mohawk grenades).
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