This paper aims at investigating the achievable performance and the issues that arise in ultra-dense networks (UDNs), when the signal propagation includes both the Line-of-Sight (LOS) and Non-Line-Of-Sight (NLOS) components. Backed by an analytical stochastic geometry-based model, we study the coverage, the Area Spectral Efficiency (ASE) and the energy efficiency of UDNs with LOS/NLOS propagation. We show that when LOS/NLOS propagation components are accounted for, the network suffers from low coverage and the ASE gain is lower than linear at high base station densities. However, this performance drop can partially be attenuated by means of frequency reuse, which is shown to improve the ASE vs coverage trade-off of cell densification, provided that we have a degree of freedom on the density of cells. In addition, from an energy efficiency standpoint, cell densification is shown to be inefficient when both LOS and NLOS components are taken into account. Overall, based on the findings of our work that assumes a more advanced system model compared to the current state-of-the-art, we claim that highly crowded environments of users represent the worst case scenario for ultra-dense networks. Namely, these are likely to face serious issues in terms of limited coverage.