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I've been testing damage between Xeno and the Dragon to see which one is better in different situations. Thus far, the Xeno has completely trumped the Dragon on invasions whereas the Dragon turned all bosses I've thrown at it into wet cotton candy (it killed Golem in less than 8 seconds on average).
For slow/strong attacks, enemy Defense just doesn't matter all that much. Additional minions probably add more damage overall.
For fast/weak attacks, enemy Defense can murder your DPS. Dealing 10 damage to an enemy with 16 Defense (8 damage reduction) will decrease the damage to 2. Yet, in that situation, a +10% damage bonus (11 damage per hit instead of 10) will increase the final damage from 2 to 3, so a +10% damage bonus ends up yielding a +50% damage increase.
There's also the diminishing returns factor of additional minions. Getting from 2 to 3 minions increases your damage by 50%, but getting an 11th minion would increase your DPS by exactly 10%. Compared to that 11th minion, a damage accessory that gives +10% damage would (again, because of Defense) increase your DPS by more than 10% and would be preferable; and most damage accessories give much, much more than 10% anyway.
There's an ideal balance for every type of minion used and enemy fought, though it'd be crazy to do the math on everything every time.