The post goes into depth explaining how the respawn system works. In a nutshell, the more players camp an area, the greater the chance that all of the respawns will happen somewhere else on the island, giving the local impression that nothing is happening. But even though the system is working, the widespread confusion over it is leading the team to look into alternate design methods.
“Even though this is working as designed, it’s clearly not working in a way that’s obvious or convenient to people trying to find trees to cut down or monsters to kill,” Daybreak said. “There are a few different ways to solve this issue which we’re discussing, and we will determine the best solution and roll this out to Landmark (and EQNext) as time permits. However, finding and implementing the best solution will take time and likely won’t be done in the near future, so as a short term solution we’re going to reinstate some overnight server restarts, since this forces all spawns to reset.”