I have found that the wands seem too powerful in 5E for their rarity....Has anyone else experienced problems with these wands feeling overpowered and what did your group do about this?

Personally, I've seen both types of Wands introduced around 7-8th level, and neither broke the game. Nevertheless, if you're feeling they're too strong, consider modifying that they get less charges restored per day, or increase the % to break the wand when expended (e.g. 20% instead of 5%). Your combats may have varied, but these are really limited use items.

(1) Diminishing returns. If you get one of these wands at 5th level, pretty awesome. At 8-10, less so. 11+, you've got a ton of better options to use an Action on.
(2) Requires enemies to be lined up in a certain way to maximize effect. Other spells may be more optimal at the time.
(3) Requires an Action. Refer to #1. Mass damage is still ok, but not what it was in AD&D.
(4) Requires Attunement. At low levels, sure, odds are you're not full on attunement items. But a Wand will be hard to justify at some point.

In any case, I ran Out of the Abyss and saw the finale demon lord killed by a Wand of Magic Missiles. Not the +2 weapon, not a 7th level spell, not an act of Divine Intervention. A measly wand. But, someone in the group held on knowing Demons were resistant to a lot of things, but not force magic. There was something satisfying to the player about using a Magic Item to finish off the boss.

Unless you're rolling randomly, you control what comes into your game. So whether it's overpowered or not is irrelevant in that scenario. If you're random, you could run into a Vorpal Weapon or the like early on as well. So I don't do much about it. We did random loot once. If the party rolled something crazy useful, so be it (odds are, though, they roll junk). If they get lucky, I want them to savor it. So consider not diminishing the Wands.

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