Actually, I prefer to QT fish in small groups. For a few reasons:
1) new fish are generally shy. If you put a fish in a QT tank alone you might never see it. In a reef, if all the other fish are "hiding" it means a predator is close by. So, if the fish doesn't see other fish swimming about, he might remain hiding himself.
2) fish lead other fish. In addition to coaxing other, more shy fish into the open so we can actually SEE them; a finicky or shy fish is more likely to accept prepared foods if he sees another fish eating them.
3) carriers vs symptoms. Sometimes, symptoms of parasites and disease are more subtle in certain fish than others. Having multiple fish increases the chances of symptoms being noticed. It reduces the risk of a "carrier" sneaking something to your DT (if you don't treat prophylactically)
4) prophylactic treatment. If you do employ prophylactic treatments on new arrivals, you will save time, medications, and effort by treating several at a time rather than one by one.
5) reducing aggression. You can also reduce aggression by QT'ing and releasing certain fish simultaneously (think multiple tangs or wrasses)
You're right though, the catch 22 is that healthy fish might be subjected to illnesses or medications they wouldn't have needed to if they'd been QT'd separately. You also might find yourself fighting multiple ailments at once which can be tricky.