While it has no visible effect on the client's gameplay, other players who witness players with framerate >160 observe an effect called "jittering", where the observed ship jumps around the screen. This is a particular problem with PvP combat as it grants the player an unfair advantage.
From a technical perspective, this is because the jittering player's client recalculates the ship's position for every frame, and this positional data is sent to the server. The server then sends that to other clients which can't "fit" all of that data into the same number of frames, leading to the jumping / jittering effect.
