Nice review Winetex. I agree that this is one of those places that lives up to the reputation. I sympathize with you on the cramped waiting area. It really is small, but hey, it's NY. Space is at a premium. But I wouldn't trade in bar space to expand it. As a person who travels alot on business, and frequently eats solo, I LOVE that certain high profile places welcome single diners and offer the FULL MENU at the bar. Too many have limited "Bistro" menus at the bar. This isn't really a place for people to hang out and drink. There are plenty of other options in NY for this. So I think that it is just fine if they use the bar for singles and walk-ins.
That said, I'd hate to be in the waiting area with 3 other people, and another table of 4, all waiting to be seated. It would be like riding the Number 4 Train during rush hour.