My Ottawa passport office experience this morning: was there at 6:30am, about 20 people ahead of me. They let us inside at 7. Around 8 they triaged the line into three: one for super-urgent applications, another for those with travel within 10-business days (that was me), and a general one for everyone else (travel within 45 days).
I was out of there by 11. Other than the wait time, the process was smooth for me, but there were a lot of people around me frustrated for various good reasons.
If you're not traveling within 10 days and end up in the general line, my sense is that you might not get served at all, given the size of the 10-day line and the speed at which it moves.