Competition for mobs and items at first? Yup, but that will taper off within a few weeks. I would expect that at peak play hours it will be packed for the first few months maybe. But the way it sounds is that you do X mission and it takes 30mins and you cannot redo it for another 18 hours (a day basically). So once you're done, you move on to do something else and if there are alot of people, you can group up and it should take less than 30mins. So people get in and get out rather quickly and make way for other people.
Unless I'm totally misjudging server population and desire to do these at the same time, it should shake itself out to being very managable within in a month or two. I'm personally going to avoid it like the plague till then. I hate huge crowds of people if its not just one giant raid group.
As far as the gear goes, I'm freaking estatic. If any of you old people are still out there and remember me, I LOVED LDON and DON stuff. I even wrote a detailed guide for creator missions cause I did them so freaking often. The only thing that could have been improved (I thought) was to make missions soloable so I didnt have to spend an hour getting a group together (i settled for 2boxing). Now it sounds like they have made my dream come true. A way to get really good gear via soloing in a task based system that doesnt require you to get lucky to get a drop (always a pet-peave of mine, camp something for 100 hours and never see the drop you want, then a guildie says its rotted like 9 times

)
Anyway, looking forward to what people on test have to say about it. The major improvement that I believe could be made is to have an instance created for you or your group to do the tasks in. I dont know if SoE could handle having a million instances open though. Just an idea to avoid competition.

"Sometimes you have to face your demons, sometimes the demon is you." - Yesak Demunstorm