SMH.
Most people have a backstory. They should feel that when a DM enters into it the player should bite.
So there should never be a problem with taking bites to your back story.
DM: You think you see your long lost sister's face in the crowd.
Player: Cool, I go sell my loot.
A DM should never attack downed players while the group is still standing. (Unless a dumb animal is trying to eat and even if the animal had 8 attacks, I would only attack once per turn to give the party a chance to save them.)
With this situation, making the PCs slaves would have been better. You don't just attack PCs to kill them.
Not a game I am willing to play.
Let me give you an example.
Your fighter goes down. Each hit while you are down equals 2 failed saves. (I believe this is correct) So an enemy wizard could launch 3 MMs, hitting the fighter twice and someone else once.
Wash and repeat and your whole party is dead.
There is a difference in playing enemies smart and outright abusing the group.
So much roleplaying was lost by not capturing the group or some of the group.