I thought that the time just calculated at different time intervals where the object would be, but it does look like the time can actually affect a lot more variables than that.
Well, remember that velocity is distance * time and acceleration is distance * time^2. Thus, any change in the time step will have significant effects on both of these, especially acceleration. And the effect of acceleration is to change the velocity of an object, so that trickles down into big velocity changes.
Besides multiplying by the fudge factor NeutronStar mentioned, as the time step increases, most games have to stop doing all calculations, just ignoring things that the designer deems insignificant. Thus, you end up with very innacurate results at higher time steps.
Think about this.... In your typical thing like a flightsim or large-scale naval battle sim, the default game speed is realtime. Most computers these days have enough horsepower to run such games at up to about 5x time acceleration and still do all calculations on all game objects without any fudge factors or skipping any calculations. But beyond that, the game engine has to cut some corners. And this is only at 5x.
Now, in US, you can get into timesteps that are hundreds of thousands of times realtime. Even going from 1 minute to 1 hour is an increase of 60x. So obviously the game has got to cut a lot of corners.
It would appear, therefore, that if you want to make a highly detailed solar system with all the moons of all the gas giants and such, you have to keep the time running slowly, too slow to watch everything go around the sun in a reasonable amount of time. But in this case, you're really interested in the details of the moon systems and such anyway. If you want to see large-scale movement, just put the major bodies in.