Didn't know it had a config file.

I ran this with a pirate bases mod (which used this).
(Admittedly these bases are large)
I noticed microstutter (1/second), but once I travelled far enough away, it spawned a pirate base 3km from my base. 'pauses' started occurring. The game would literally stop for about half a second.

I checked the warnings and found this at the top.

I saw some performane tips on the modding form, (simulatebefore() has a 16ms total budget, and that link about threads...).

Then I looked for simple fixes.
Stuff like hoisting a check for regenerating blocks out of a loop... ((Are all those extra whitespace lines part of your preferred style?))

Realizing I'd have to do some real work and brush up on C#... I decided to 'maybe fix this someday' and posted my hope that someone might fix it before I bothered learning Space Engineers modding myself.

In closing: I really like the idea, I'm probably hitting worst case, and I'm sorry about the terribly inaccurate and underspecified post once I frustratedly gave up on using it.

PS: If it helps, I removed this mod (and the pirate bases mod) from that world, but the large pause performance problem persisted. I don't know if the code is still running in that world attached to the created objects or if some other problem is occurring. I created a new world (solar system: Earth lander) and haven't had any performance issues.