As of 4/11/13 still broken. Like others, I have rescued Demmi, she and Tybalt have fled the instance, and I killed every pirate after several attempts. The next waypoint is just outside the instance, and the mission will not progress. I even killed the fresh water crabs and wandered the pirate camp to see if there were enemies there. All I could find were the pirate NPCs where the drinking game took place. I just completed my second run through the mission, with the same results.