Neither I nor my heroes ever damaged the pets at all, and they all came out Hearty. I'd turn them hostile with Charm Animal, cancel it, then just die. Heroes stayed on avoid combat the whole time. I DL'ed at least 25 level 5 pets wandering the grounds to level 20 this way. Every one came out hearty. I never killed off the multiples either.
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I come to this conclusion since I just tried to death level a wolf and a black wolf together. The wolf became level 20 whereas the black wolf remained level 5. As soon as my hero charmed the wolf, the black wolf started to level up.
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In any case, if you have multiple pets of the same type, they'll all split the experience, making the process a whole lot slower. For instance, I death leveled some flamingos the other night. With four of them in the area, it took over an hour to get them to level 20. I'll point out that it wasn't exactly four times as long, but that's due to the fact that they would wander outside of aggro occasionally (and of course the ones still in aggro would therefore not split the XP four ways).