1) Welcome to the forum!
2) There has been no real progress that I am aware of. None that anyone has mentioned, anyways. People don't often complain when things are running well lol.
3) I keep hearing this "pathing issue in China thing," but aside from an occasionally non-functional adventure board, paparazzi tournament opponents, not being able to access Dong Zhou's tomb one time and the dreaded "travel bug," I have never at any point had any manner of issues with China. No lag, no nothing. Thus, I am still somewhat skeptical of this particular bit of info, because if there was something inherently wrong with China on EA's end, everyone would be experiencing it. I'm not saying that it's not true, but the question of "why doesn't everyone experience it" really needs to be addressed.
4) Nobody has ever mentioned what town they are having this stopping issue in. However, this kind of complaint is somewhat common with the towns Riverview and Barnacle Bay. My theory is that this issue is a result of their single common factor: the existence of World Cache files. If I'm right (and I may not be), it's likely that Hidden Springs would experience similar issues. Deleting these files does help to some extent, but it is by no means a perfect or permanent fix. It's something you should do anyways, to minimize the problems.