Yes, definitely an issue at smaller stations, particularly during the summer. YHZ is more of a mid-size station, but a few weeks back, there were non-status customers had lined up ahead of us in the priority lane, and the agent proceeded to check them in, despite not being eligible for priority check-in. They spent about 5 minutes arguing with the agent over paying bag fees, so didn't have status and weren't traveling J.
It's unfortunate when the agents proceed to help customers like that who have lined up in the wrong line, but keep the SE/J passengers waiting. Seems to be more of an issue at small and mid-sized airports (often the larger stations seem to have agents directing customers before they line up).