I read this to mean that if the players are in a hurry, due to some type of drama, then things are closer then they might otherwise be?
Or farther. Depends on what the story requires and what makes for the best drama.
The only thing I don't change is the distance between places they've been to more than once. My players have access to the raw files for our podcast, which they do listen to, so it's hard for me to hoodwink them.
So far, they've been operating primarily in the Liegeport area, so they've gotten pretty familiar with the lay of the land.
What level are your playing at?
The system we're using doesn't use levels.
Do the players really know about stuff thousands of miles away?
Some. The map they were given was a map they stole from some bandits who got it from a government surveyor they waylaid. The major towns, ports and forts are there (ie the stuff the government cares about), but not much else. They've gleaned other information just from talking to NPCs, and they made one trip to about the center of the coastline.
Where Ross went with America for his new world inspiration, I went Australia, so the theme of our campaign has been indentured servitude of the poor, unloading of criminals, and plunder of natural resources by big companies. A lot of the information about the company-held territories is know only to the companies, especially if it's bad.