So, my question is, could it not be that even though GR renders all coordinate systems valid, the one where everything revolves around Princeton NJ, for example, would be rejected as a real description of the entire universe even though it might have some specific utility?
Yes, but you may not have expected me to highlight the critical word in your question. See below.
I am anticipating the response that there can be no preferred frame under GR -- end of discussion.
Although that response is correct, it should be the beginning of discussion.
In this context, "coordinate system" is synonymous with a coordinate patch or chart in the sense of differential geometry. Any such chart is just one of many possible homeomorphisms between an open subset of the spacetime manifold (or manifold with boundary) and an open subset of 4-dimensional Euclidean space (or space with boundary), regarded as Minkowski space.
The entire spacetime manifold is covered by a full atlas, which is a collection of such charts subject to a condition that says they play nicely together. (Their compositions of the form f(g
-1(x)) are diffeomorphisms, and the higher order derivatives exist also.) In general, it takes more than one chart to cover a manifold. The 2-sphere, for example, cannot be covered by a single chart.
So far as we know, a chart that's approximately at rest with respect to the cosmic microwave background radiation covers as much of the known universe as any other chart can cover.
For all I know, a chart that says the residents of Princeton are being accelerated directly upward at 9.8 m/s
2 may not be able to cover so much of the universe.
Locally preferred charts may run into coordinate singularities or other pathologies when you try to extend them to cover large sections of the universe. That's why, for all I know, a chart "where everything revolves around Princeton NJ" might have to "be rejected as a real description of the
entire universe".
We've seen an example of that in both the
Black holes and
mathematics of black hole denialism threads. Schwarzschild coordinates work just fine as a static description of spacetime around an isolated star or black hole, but they run into a coordinate singularity at the event horizon of a black hole. To obtain a chart that includes the event horizon, you have to give up the illusion of staticity and use different coordinates, such as
Painlevé-Gullstrand or Lemaître or Eddington-Finkelstein or Kruskal-Szekeres coordinates. Of the coordinate systems just mentioned, it is my understanding that Kruskal-Szekeres coordinates are the only ones that can describe the largest possible spacetime manifold that contains an isolated black hole and satisfies Einstein's field equations.
That gives you an example of why some coordinate systems must be "rejected as a real description of the
entire universe", even though those coordinate systems make perfect sense (and may even be preferred!) when describing some small piece of the universe.