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Opening in-game scripting to players through the Python API

There are two questions, can I, as the developer of a game do more with Python than just editor scripting and automation? From the API reference it seems that the whole Engine API can be accessed from python scripts. So can i use it for gameplay and AI scripting.?

Also will it be possible to use python for real time, in-game scripting, not just modding?
If both these are possible can anyone also put some light on what the performance implications would be?