I think CMs are urged to keep the line as tight and compact as possible, both so the line appears shorter and they can fit as many as possible in the queue. So, yes, the CM likely DID want you to breathe down the neck of the people in front of you. Of course, the CM could have been much nicer about it.
Last trip in November, we noticed at both WDW and Universal that every line we got in we were herded like cattle with CMs yelling in everyone's ear to move closer. I get what they are trying to do but it was irritating no less.