I would like to point out a few incorrect things with the parent post.
1) The telnet server, while part of the source code on the client, is not ever run by the client, and there are protections within the code to keep it from being run on the client. The reason it is in the code is because some of the source is shared between both the server and the client, and the telnet server is intended to be run on the serverside, presumably for live debugging.
3) This is completely false. Even without the source code, you can see that the EVE servers do not send any information about ships or even most objects within the current system (zone), unless they are within 200km of you. Anything within this 200km is shown to the client anyways, as EVE is very good about giving the player basically all information that is sent to the client. You can see who has entered the system you are in, but this is also shown to you in the client. Knowing their specific location is not possible, as that information is neither sent to the client, nor stored there, unless in the above stated case where they are on the same grid (within 200km) as you.