That's what Valve is doing for their games (see their Source engine docs.)
However, you don't always send the entire "world", but a delta-encoded version of it (the server keeps a history of the world state and a timestamp for each client, so it can send only what has changed since the last acknowledged packet.)
Depending on the game you have to do a bit more work (interpolating changes so it always looks smooth even if packets are dropped, latency compensation, etc.)
However, you don't always send the entire "world", but a delta-encoded version of it (the server keeps a history of the world state and a timestamp for each client, so it can send only what has changed since the last acknowledged packet.)
Depending on the game you have to do a bit more work (interpolating changes so it always looks smooth even if packets are dropped, latency compensation, etc.)