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Remember on PC the servers seem to lag when all factions are pop locked. And according to Zos only the vet servers are the ones lagging because of how guilds run aoe abilities.
I have never gotten lag but twice this week I have gotten random loading screens in the middle of a fight and when it came too I was dead. Really annoyed me tonight because despite being outnumbered I had the two boys dead to rights. I don't always fare that well.
The servers for PS4 ESO have definitely been hiccup-y. I believe this has something to do with the relationship between ESO's servers and PSN's servers. The only solution to this that I have found was to specify via your Internet Connection Setup which primary and secondary DNL or DSL (can never remember the name of the darn thing) you would prefer instead of whatever PSN picks instead. The game, for the most part, depending on your internet and area, seems to work fine at this point on most days. That does not mean it will never lag. Overuse of aoe abilities does not seem to lag the game. I was in a Vet Dungeon facing the final boss for Crypt of Hearts, who does a ton of aoe abilities, on top of all my allies aoes, did not seem to have an effect.