The only times I have interacted with Ooze Town have been stepping through the transition and the whole party immediately stepping back, or one fool running in and dying and then another person running in to save them. Also, I've heard Ooze City has no loot and gives bad exp with infinite spawns to kill you with long range ooze shots.
That said, I think it has some interesting potential that isn't being fully realized. Ooze City seems like a trap zone to me, which is good for a dangerous place like the Mists to have. However, the trap will only catch a very small minority of the population -- that is, people who have never been there *and* never heard / listened to the countless warnings from everybody else on the server not to go there. As it is, the zone is the bud to a beautiful flower, but it is being deprived of the sunlight it desperately needs to bloom.
I think the best way to revise Ooze City would be:
-Make it feasibly passable by any player.
-Make the escape route difficult to get through.
-Make the process by which the escape route is utilized break from normal gameplay (Lore checks, Search checks, riddle dialogue and dialogue trees, etc).
-Remove the transition at the entrance of Ooze City from the Ooze City map and make it inescapable to leave once inside.
Doing this would lead to an interesting experience through the zone and also offer a means of passage for those who are determined/familiar with the map. Also, removing the transition at the beginning of the zone once in will certainly scare the pants off of any inexperienced mist-walkers, and add to the feeling of dread the server is supposed to have (of course, as trolly as this might seem, any player who has to leave for whatever reason and does not want to complete the escape route puzzles will not be forced to -- they may simply log out and wait for the server to teleport them to their last safe location).