Im sure LDONs were instanced. Werent limited to 5 or 10. The suffix of A, B, C, etc reflected the map layout of the dungeon you were running. You could start in several spots in each of the various layouts.
Reason people were standng around waiting for a instance was you were limited on how fast you could do the next instance, but it had nothing to do with people waiting for an instance to be available after successfully doing an instance. If you failed, you could start right back in.
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