The foam is a good fix if the door isn't wide enough to overlap properly.
We don't have the issue with our '05 990. The bottom door track is a piece of plastic that keeps the door from swinging out away from the wall, the door overlaps the door frame about 3 inches on one side and about an inch on the latch side, and the door to wall distance is probably less than 3/8" at the top. You can only see out if you press your face against the door and then not very well.
The only issue my wife had with it was when we first bought. It was that she could see out the crack on the right hand side where the latch is. This allowed her to see out the back door window.
I moved the latch plate on the wall to the rear of the camper about 3/4" allowing the door to slide past the door frame that much further, ended her distress with the view.
I guess the older campers had a wider bathroom door. We have to partially close the bathroom door to open the pantry door. They may have changed it on the newer models for that reason, who knows.
Joe and Evelyn