Whether or not its a big no no, is definable by the goals of keeping the fish.
If you want to enjoy fish displaying natural fish behavior and thriving in a healthy environment... than don't over stock. Period.
However, if you have a fish farm and your goal is to see how fast you can grow a huge number of fish to marketable size using the least amount of resources, you had better have those tanks/ pools stocked to the max.
Tilapia are ridiculously aggressive. My 15" tilapia would kill my 17" pacu if given a chance and that pacu has got to be about 4x as big. Yet tilapia get rasied (Quite successfully) in densities of 0.5-1 lb per gallon. Pound, not inch... POUND!
My single tilapia in a 125 gallon tank is my friend, a wonderful pet, full of personality, he could NEVER display that in a tank with 75 other tilapia.
So it depends on your goal. Overstocking causes stress and shortens life spans, leaving fish prone to all sorts of trouble. On a fish farm, the fish reach market size long before the shortened life span kicks in, so its just not a big deal. If it was my pet... a shortened life span would really bother me.