Amazing!! 
Yes, the idea with an entity-based model is that entities would be synced between Collect and the server outside of the context of a single form. So you could have 10k entities and if only one changes, only that one would be updated. Forms would be independent of the entities they act on and wouldn't need to be updated at all in case of entity changes. Hopefully that's where we're going. As you can imagine, it's quite a different model. For now what we've described here would still be the existing model of data updates being tied to forms.
@Ivangayton that's exciting! Will get in touch soon. I think this work as outlined here is ready to move forward but there are lots of related areas where some geo expertise would be very beneficial. In particular, @danbjoseph keeps reminding us that with something like this, offline custom basemaps are even more important.