36 is really low. Thats just 3 groups. 1 for each district.
And the plaza also belongs to the zone, so if you have people running around there, looking at the merchants, talking to npcs, reading lorebooks, etc, those are also missing in the combat zone.
I suspect 36 players as a cap might have been chosen exactly with that in mind: One group each per district, so groups don't bother each other. The problem is that people come in solo or in all kinds of group sizes, seperately from each other, and don't nicely enter the different areas according to some imaginary plan.
There's not even an indicator how many people already are in a specific zone. Maybe they could change that, too? In player houses there is a line of text that shows how many people currently are present, so there's clearly a way to track and display that already.
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Even if you travel to a player from your guild, you don’t end up in their instance. This is a real drag when a group is full and another one isn’t available.
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This limit makes the zone seem dead. Also, our guild was running two full groups last night in one district so we could blow through the bosses, so that means we were taking up most of the available slots in that instance. That doesn't leave much for others. Tonight though I hardly saw anyone so I gave up and left because that content is not soloable despite them saying it would be possible.
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It is a night and day comparison between having a good group and trying to do the content solo.
Spartaxoxo had a good suggestion about a new Event Zone entry in the Activity Finder that I did not know about. I will look up and add a link to her post here in a minute.