Not sure why this is happening, but the number of instances appears to have been reduced, resulting in SEVERE lag in many zones.
I was just attempting to do quests in WoD zone. Four instances, ranging from 23 to 30 players each. Consistent rubber-banding through the entire zone. Attempting to pick up quest items takes 5-10 seconds each, it's ridiculous. If you've removed hardware to save costs, you need to reverse course or you're going to lose even more players.
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Instead performance has gone down, way down, with Mod 16.
The performance issues some are facing is unlikely to have anything to do with what's been stated here.
Now I'm seeing 23-30 players per instance.