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An instanced NM concept sounds intertesting, but I must say I enjoy the open world NM's currently. Heck, just earlier I was running through the black shroud forest trying to light some fires for some quest, and I came across a big beautiful NM doe. I didn't attack her, but seeing a rare creature made my forest run much more interesting. (and also because a small party ran up and jumped her right then..) That's one reason why I like this NM system, cuz it adds interest at random moments.
If SE were to change the NM system, then I'd agree with Speeral's idea and make it partly instanced, and partly open world. Adds variety.
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I'm on one of the more populated servers, but already no one is camping these nms lol. I think most people had an r50 to just beat it down and get the gear already.
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Your instance NM's are that in the GuildLevs you guys can get. Having everything instanced because everyone wants it doesn't mean it should be. For me thats part of the fight, being able to get the claim and beat before the other group does.
Sorry, yeah sure certain NM's should be but I don't think the majority should be. You won't be needing this NM's once there is more content. These NM's are for lower ranks and new people coming with the PS3 release shortly. In order for them to get this game going again they need Low/Mid rank content for the new people. They are doing this by the side quests/NM's/loot etc.