As I understand from the wiki, all commands are sent to the whole string. At some point, the nodes are assigned a 'number' within the string [more correctly each channel color within the node is assigned a number] and any given node/channel just waits "X" number of commands before picking it's command out of the string.
Based on that, it would seem things would progress as:
node 1 ...channel 1,2,3
node 2 ...channel 4,5,6
node 3 ...channel 7,8,9
Once those nodes are programmed, then node 2 knows to pick the 4,5 and 6th command out of the string after the start code is issued? It would not seem to matter where the node is as long as it was programmed with the proper channels in the beginning and kept track of thereafter.
Though as pointed out, light show programming would be a nightmare and I don't have a feel for how 'stable' the node address programming would be. If it is a 'once and forever' type thing, I guess a guy could always program the string as a string, then cut and solder into icicles. But if they require periodic reprogramming like some of my X10 stuff, that would further complicate.
Anyway, not meaning to beat a dead horse, here - just passing some time 'till I get my hands on the hardware!