This is normal for a AAA MMO launch. Every AAA MMO in the past 10 years has experienced problems of this magnitude, or greater. Remember WOW launch in 2004? Sure I could log in just fine, but lag was killer for up to two weeks. Taking 20 seconds to loot a mob is no fun. Star Wars Galaxies? Diablo III? All experienced severe problems.

Even though SE is bottle-necking the servers, once you do get in, it's worth it. Played from 5:30am to 11:00am today, NO lag at all.