re: Is this what "Next Gen" will be?

Yes. Most AAA multiplayer heavy titles will have server issues when they first come out. Destiny had a full on alpha and an enormous beta to make sure things were stable when it launched and the game still some hiccups. A poster a lot smarter than me explained it very well by going to a ton a detail, but it was basically that the servers just can't take the massive sudden hit of millions of people trying to play at the same time for the first time.

It doesn't help that companies seem to be getting forced to release things before they are ready.

I'm willing to deal with it if companies are communicative and putting in the effort to fix things.