Ok so my first experience with Champions was in the new content particularly Terminal Delirium which sounds like it is slightly broken. Being one shot with 800hp, 95PRR, 50DR while shield blocking by a Gargoyle of all things I was kind of like "seriously? This is kind of broken"But after continuing to run the content in Epics and adjusting tactics slightly I accepted them. The extra chests have been nice for a good loot***** like myself. Though in some quests and some areas it does seem way overkill. I mean killing a few champions and having an extra chest or two dropping is kind of nice, but running a quest and seeing an extra 10+ chest drops is way overkill I think. Either the champions are spawning too much or the chests are spawning too much.
However where I really noticed about the champions and really have begun to change my opinion was in the Heroic content on my lowbie TR. Running around in the Harbor was a very different experience. No more zerg and killing, I actually had to use tactics and interestingly the right weapon was really important. I mean being in Haverdashers where the scorps have 100ish hp, and then one pops with 450hp made me totally which I had a vermin bane weapon.
So in your effort to make quests more challenging, I think you have hit upon a winner Turbine. The system most definitely needs to be tweaked, but I think we are headed in the right direction. Both with spawn rate in certain circumstances, and chest drops (I think in only certain circumstances). I am legitimately concerned about trying to solo some heroic quests, which I think should help increase the number of LFM's on the server. But whether I group or not, my tactics will most definitely be changing and likely create overall more of a fun experience even if it is not a zerg experience.