Grim1
Ahn'Qiraj Raider
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While I agree that instancing of any sort breaks immersion, if you don't have them in some way then you'll have to add a couple more things to your list.. queues and/or very long travel times.No my friend. This is a very bad compromise.
If you spawn another zone of Crushbone (for instance) because the dungeon is crowded then the game will cease to be a virtual fantasy world and is more of a multiverse where there are more than one parallel universe with Emperor Crush at the same time. Not only it destroys immersion (how can you have two Naggy's at the time time?!) but it also separates the community and makes seeking an item from a named not that difficult since if your named is camped you just try the same name on the other channel/zone.
The solution is.
Make dungeons huge with different entry points (why do they have to have one entrance?).
Make plenty of dungeons of various sizes for each level range.
Stop funneling players towards specific areas (Questing, Linear Paths...etc).
Players will always gravitate to the zone that they perceive gives them the most benefit. It's a function of human nature. Devs try to get them to spread out but it rarely works. So the fact is that the dungeon that players perceive to be the best for their level is the one everyone will go to unless they are prevented by long travel times or queues.
Long travel times are a very hard sell. EvE has been able to make it work but it isn't a fantasy mmo and is also heavily PvP focused. Queues are hated by everyone.