But the phantom village has seats... I've been AKF on them several times after running around the south horn, gives the place almost a cute little park feeling thanks to the large fountain, if you meant inside the south horn then there are seats there too at the camp that I've been half AFK on often as well...

What I could say is that there aren't that many seats, but like, I've never seen that be an issue with others using the benches and people will just AFK however anyway? I've personally been AFK in the fountain too, just floating around, and as you said most who are AFK just timed out of the instance anyway so of course they are just standing there, I really don't get this complaint unless you're just wound up about the lack of seats right in front of the entry?