Well... I love the app process; granted I've never tried for a PrC and probably never will, but some things are meant to be rare, and it can be immersion breaking to not be able to throw a rock without hitting the same old OP PrC builds that should be hard to find. Those apps keep things from getting ridiculous.
Ive played on more "open" servers, and ill tell you there are few things more soul wrenching than watching flocks of half drow/fiend/(enter super rare anomaly race here) duel scythe-wielding weapon masters running past, yelling "Sup" as they blow past me to the next raid. Or worse, the powerful wizard with the tiny dip into shadow dancer for hips *shudder*. The app process keeps those powerful classes to the players who have shown they have the respect for RP to use them responsibly.
I've found the new players are great RPers, and have really enjoyed interacting with a lot of them. Its true there are millions of people standing around outside, but this comes and goes. When I first joined, there was a real sense of fear for going outside at night, and since then, I've seen it ebb and flow. If you are upset by it... make a AMPC and spread some horror.