I cannot speak for other consoles, but when it is night time everyone bails from PVP and heads to the spawn locations for Werewolf/Vamp bites for their mains or their alts. I was a werewolf but trying to swap to Vamp after I found out that as a sorc it is a better option, I am sitting at the least camped site in Bankorai with 30 other people right now.. People that are not questing and are not in PVP.
After about nine or so days (in real time) I have been to about 16 different in game midnight's and only once that I have heard of did werewolves spawn, maybe around last Tuesday?.
With scarcity like that there are scammers everywhere (level 15's trying to sell bites) and then griefers sitting and waiting to ruin it for thirty people. Also, thirty people trying to get the attention of spawns obviously will not work.
I am sure it will get sorted in a few months as the spawns happen, but a lot of people will get mad and give up before then.
In the meantime it is screwing up PVP.