Sometimes the spawn seems just right, other times it doesn't balance out. It's kind of off the topic of Shame but if you have 4 people kill an Elder Gazer, that's probably around the number of people you would want. If you have more than that, the spawn can't reproduce fast enough to give you the loot benefit.
I'll give you an extreme for example: An Elder Gazer pops up, a swordsman swings his sword 3 times and then loots. So, we'll say about 3 seconds.
3 swordsmen kill the Elder Gazer and then have to wait depending on the spawn timer. 10 people means there are 7 people not receiving any loot.
So, if the spawn could detect that there were more than 3 attackers, it could increase to spawn 2 Elder Gazers and on the next spawns if those Elder Gazers were instantly zapped then the next set would be 3 Elder Gazers to create a balance until the spawn took 3 seconds.
So, the problem is, if you take 10 people to go kill another Gazer, there is not enough spawn, also, there is not enough challenge. Usually this occurs somewhere around 4 people.
I would like to actually see the party system give each party member an individual loot rather than a shared loot, for reasons being, when you go into the loot and someone has already taken the gold and the best item there is no longer any reason to be there. So, there are other issues.
Also, the hit points, if 1 person is hitting at a creature for an hour and 10 people kill it in 5 minutes, it makes the spawn to unique to any common adventurer or common party. So, the idea is to be able to wonder around or to level up by going down to the next dungeon level without needing a large party but at the same time, being able to take a large party and still have it be a challenge.
So, that's just my opinion on why loot should be more for parties based on the time it takes to kill or have something respawn. Most of the time I find myself, for example: Hunting daemons and wishing a paragon would pop and then when i'm with a group of 4 hoping 2 paragons would pop and then knowing that if there were more we would need at least 6 or 7 and that's not so much for the gold but to keep the game intense.
So, the daemon spawn is nice to visit but in no way do I find it a challenge and I would probably make more money around 60k in an hour compared to a party at about 30k and that's based on the spawns capability because the faster I kill them, the longer I have to wait for a respawn so you could add more hit points so it takes longer, lower the gp, add more spawns, anyhow, you get the picture.