That map is huge. I mean even if it were possible to simulate it it's 100M objects! If each has 100b of state information (think also rendering, sprites) how much memory would that take? 10Gb...
Static bodies are pretty fast but I can tell you in my current project on a decent PC 300 dynamic bodies each with 3 joints already prove too much to handle so we're way off scale.
I don't exactly what your situation is from a brief description but it seems you need to implement some form of dynamic paging system where each actor only interacts with a small space that is dynamically loaded. For example create a separate world 10x10
tiles around the actor (pc or NPC) and let it move around the tilemap as the actor moves destroying the bodies that go out of range and creating new ones in the proximity. Won't be that hard to implement with some careful thought. Even faster if your tilemap
is made of 10 unique configurations then precreate a pool of objects far away and just teleport them dynamically (Body->Position) when they come in sight.
For a complex paging system I could point you to the excellent Ogre Paged Geometry
http://www.ogre3d.org/tikiwiki/PagedGeometry+Engine which has some great ideas implemented and working beautifully for 3D forests with huge amount of trees (we're talking milions).
P.S: you can't have collision with non-physics entities i.e. objects that are not made known to the physics engine.