I recently flew EWR-MXP on the B764 - from my seat in row 34 (E- behind the block of lavs at door 3L/R), things didn't seem that bad. The purser did announce a request to respect the rope dividing the cabin (which sounded like more than the "please use the lavatory in your ticketed cabin" anouncement). The F/As that I spoke with in the rear galley didn't seem too happy that lavs were removed to accommodate extra seats.

In my opinion, things would have been worse in the days when everyone watched the same movie together - the queues got quite bad when the credits rolled. Now, with AVOD, lav use is more distributed throughout the flight.