Nope, only PvP server I played on was my first in the latter half of vanilla.
Instant-teleportation makes the dungeons feel like disposable one-night stands. It also reduces the number of people you see in the game world – nowadays on fresh servers you’ll easily pass by 3-4 full groups when you yourself are heading to the dungeon entrance. Getting teleported back to wherever you were also de-incentivizes the group sticking together to either re-run the dungeon or maybe complete some of the zone quests in the area near the dungeon entrance. In PvP servers there is an even larger impact, but as I said earlier I only play in PvE so I don’t really have an opinion for them.
Downtime is necessary in gameplay. If there’s only peaks and no lulls, the things that used to be peaks become commonplace and boring. This leads to another iteration of ‘i’m bored, this takes too long, make it faster’ ad infinitum until the ethos of the game has transformed completely into instant-gratification self-important mobile game trudgery.
Edit: There’s a fair amount of good discussion about both viewpoints available in this older thread: [Classic] Looking for Dungeon - Community / WoW Community Council - World of Warcraft Forums (blizzard.com)