Also, if it is as simple as requiring a certain HP% of damage done, then it actually becomes more important to split groups as the "best" group becomes better geared. Let's assume that "gold" loot is 8% of the boss' health:
Group 1: 15% 2: 14%, 3: 13%, 4: 12%, 5: 11%, 6: 10%, 7: 9%, 8: 8%, 9: 7%
Here, 8 groups get loot, which is still okay. Now, what happens if groups 1-3 all do an additional 2%?
Group 1: 17%, 2: 16%, 3:15%, 4: 11%, 5: 10%, 6: 9%, 7: 8%, 8: 7%, 9: 6%
Two groups definitely don't get loot, and a third might get some. Go up even a little bit more (or, even worse, the threshold is higher than 8), and half the zone is popping S ranks for nothing.
e: Remember, damage is zero-sum - one group being better doesn't make the other group bad, just not as good.

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