Forget about what strategy and opinions. Here is the issue:

I looked back at the logs that this paladin generously posted,
and realized that the paladin did not shield block or parry the
demon. The demon made 1 attack in that last round. This is the
issue.

Here is a cut & paste of the last round from the paladin's perspective.
*PS* I would like to point out that this paladin is great IC and OOC. Much respect *PS*

You parry an air elemental's blast. <-- 1 attack
A monstrous mors-gravis demon's beating MUTILATES you! <-- 1 attack
You sure are BLEEDING!
You parry Conjurer's whip.
Your searing cut MASSACRES Conjurer!
Conjurer deflects your searing cut with his shield.
Your searing cut DISMEMBERS Conjurer!
Conjurer is DEAD!!
Conjurer splatters blood on your armor.
An air elemental vanishes, its binding broken.
A monstrous mors-gravis demon vanishes, its binding broken.

Forget the elemental. 1 attack per round from a 30+ demon is
a problem. What is causing this? Is this the gangbanging
code.. Or are demons capable of randomly doing only 1 hit per
round?

Either way, I think I have identified a problem that needs a more
substantial answer.

Going back to the gang-banging question, I would like to make ask the
question more explicitely. When 1 conjurer + 2 servitors attacks a guy,
is that considered a gangbang in the context of the gang-bang code?

If it does:
Valg said that a warrior suffers more from the gangbang code then
conjurers... I am not sure how this is possible if the gang
bang code ends up always applying to a solo conjurer with servitors.
Solo warriors are not affected by gang bang code.

I have a sneaking suspicion that this might of been overlooked,
based on the responses and the announcements.