I remember reading something on polygon, about people making lines in WoW Classic, to start/finish quests, as not to overpopulate the "personal space" of the NPCs.
Of course, that's a bit too much hardcore, but it should be used as common sense, that other people need access to that NPC, and you should not deny them that. And not just the interaction with them, but the whole "ambience" they were set onto.
I agree with BiddyBatnana that SOME people might be selfish to that point, where they do not seem to worry at all, as how they are affecting other people experiences.
The range for interacting with NPCs is quite enough to leave sufficient area for they to actually appear in everyone's screens.