No more of a problem than tons of bodies clogging up narrow areas because they can't get past each other.
It's already confirmed that they'll be no CD between player characters and NPCS and each other.
As a side note, there is no collision detection, so there will never be the problem of people blocking off areas for others.
On topic, even though it's one large mega server, there will be instances that segregate players, I understand there's a priority where you are placed with friends/guild mates first. To have no instancing and just have tens of thousands of players in one area will be ever so slightly laggy for some I'd imagine.