First of all, there is definitely progress being made. The addition of full cross-faction grouping and auto-teleport functionality is a big plus. That said, there is at least one very serious problem with the group finder at present.
The Problem
As most who have tried it know by now, you cannot sign up for a dungeon if you are already in a group. Correction: you can, but it breaks the finder. Here is an example that just happened to me: I signed up for a damage roll as solo, not in a group. HOWEVER, someone else must have signed up already in a group of two or three. What happens is, the group finder loses it's mind and forms a group of more than 4 (in my case 6 plus one more offline).
Of course no one can port in because the "instance is full." Even if you drop a couple so there are only a total of 4, the instance remains locked and there is no option other than disband and waste the (in my case 50 minute) wait time to either try again or give up.
The Fix
Obviously ZOS can address this in one of two possible ways. The first would be to simply do a check when signing up and if you are already grouped give some message saying "please disband your current group before joining the dungeon finder." Of course this would be totally lazy and would go against the whole "play with your friends" philosophy of the Megaserver.
The better solution would be to implement the following code (paraphrasing):
if pieces <= 4 then <group them> else don't
Not exactly rocket science there...
ZOS, I am sure you guys can figure it out, I have faith in you!