The grouping issue is simple, really.
Groups are shitty.
I have yet to be in a group in this game, after 52 levels on a necro, 50 levels on a cleric, 49 levels on a bard, and ~20 levels on each a shadowknight and a rogue, where any group earned better xp than I could have earned solo (excepting the rogue, of course).
I don't know if players are bad, or if they don't pay attention, or what. But group xp is just terrible on the whole, and even in a great zone with a balanced group of good, attentive players, group xp is only "good."
Because of this, anyone who can solo decently or better (aka everyone except rogues and warriors) WILL solo. They will avoid having to spend time and effort moving to groups, dealing with bad players, putting groups together, sitting around with /lfg on. And they will earn more xp for less effort.
There being too few people grouping is just incidental to this.
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