You are dead on as far as i can tell. Im not nearly as credentialled as either of you, but ive been working on what im sure is a comparatively primitive search and the asynchronicity of it all makes it so hard to get the best results at the top quickly.
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It's complex but not that much... It just takes a few relays as inputs, downloads all events from them, collects all references to other relays and keeps growing the list of relays to check. Then it just dedupes by ID. Takes about 1hr to generate the report with about 2.5M events.
Hmm probably is O(n) then. Guess no need to do any elaborate cross indexing.
Of course, with all the zaps on comments on likes on zaps on commments on likes...it could still get silly.