I too have noticed /waypoint is very buggy now. When you first do it, it will indicate the direction for a while and then all of the sudden it will stop. The trail will go away, the direction text stops, but the map still shows it so you're still waypointing there. After you get close enough the trail seems to come back but I don't recall the direction text always coming back.
Personally I'm hoping that waypoint may get revamped with the new map as well... it's never been that effective at pathing (ie leads you into a wall, etc., especially indoors where theres a lot of walls and doorways). But I also know that's probably not going to happen =/
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