There are many things to consider in your question:
1) Distributed master - who starts the game then? where can I find the first node? what if everyone decides to close their P2P client at the same time? does the world end?
2) Distrubuted rules - who can confirm that player 77 out of 102235 killed a monster at x,y,z ? I see BIG troubles in hacking/cheating with out a "chief in command"...
3) Latency - when has a client recieved all data? what if the internet breaks down? or in a LAN game, what if the harddrive dies - will this crazy the game for everyone else?
I do believe that the P2P thought is interesting, but as in all competitions, I believe that we will need a "judge" who can handle the rules, because when you are competing against "anonymous people" then its "okay to cheat" a lot thinks.
I think that some sort of grid computing might be the way to do it, but again, if some in the grid falls out or are too slow for rendering world and sending results back.. then we have the whole game "lagging"... = terrible game for everyone... this is already seen in many FPS games with a master-server. If the network protocol doesnt handle lag too well, its getting harder to hit a person running or they appear out of nowhere shooting you in the face.
An expensive solution might be to have "subservers" (proxy-game-servers) where you have some of the data more close to the players. This I believe would require you to have access to a lot of serverfarms around the world (as Blizzard does with WOW) or you will have to invent some sort of intelligent "P2P host" that will upgrade itself to "subserver" when then bandwidth is big enough and enough players are close in proxsamity of it (always checking the lag from its point of view... )... now lets say that was possible.. what if the line is broken between this subserver and the main gameloop globally again?
LOL... this could go on... it sounds more and more like the general trouble with the Internet :-)
Happy coding... !