I believe it's working as intended.
Im not sure if you were expecting some holy, magical tool that automatically puts you in the instance with 4 players, but it does its job. It's not cross-server, so you can expect it to be longer than a cross-server tool. It's meant to group people easily, to avoid confusion, and it also shortens queues.
And if you are experiancing long queues, try queuing with a friend. That usually speeds up the process.