Agency ratios set instructors up to get in trouble. The "use your best judgment when conditions may warrant a reduction" line does nothing to protect the instructor. It only serves to cover the agency's butt.
Pool ratios of 4:1 are nuts if we acknowledge that we do not actually have students who, HOPEFULLY, have been fully briefed on all the risks of diving and may be less likely to do something bone headed. Discover, Try Scuba, Scuba Intro's of whatever you want to call them are often done with little to no discussion of the actual risks. To do that is bad for business.
Even in a pool less than 10 feet deep someone can suffer an embolism and there isn't a damn thing the instructor can do if they have four people they need to get to the surface at the same time. Humans, last time I checked, only have two hands.
If you are controlling the inflator of one person to demonstrate neutral buoyancy and you have four people at least one of them is not going to be within arms reach. That person suddenly inhaling a snootful of water and panicking which results in them shooting to the surface while holding their breath is quite possibly dead.
SEI at the last DEMA update I attended reduced the ratio to two to one. One to one with kids. Open Water experiences are forbidden. Can't do an OW Intro if I wanted to. Which I don't. After the Tuvell fiasco I chose to operate on a one to one with anyone for Intro's. Simply because I don't have the full two classroom sessions and full pool session covering swimming, snorkeling, and skin diving skills before they even get put on Scuba.
I have an OW class now with a family of four. The first time they went under the water on SCUBA it was one to one. I'd take one down, have them breathe, relax, twiddle their thumbs, communicate with me, then bring them back up. Then did the same with the next one and so on. Note that when I was under with one the first time the others were made to remove their weight belts and stand against the back of the pool touching the wall facing out.
When we did descend as a group in the shallow end it was horizontal with the buddy pairs in touch contact. As we moved to the deep end they moved as pairs in touch contact. When they swam for the first time neutral I led each one on a short loop within 8 feet of the others. The other three were made to link hands. After assuring myself that they were each comfortable and stable we started on skills.
With an Intro you don't have the time usually to take this much time. Therefore for me. More than one to one I consider unsafe. My ego is just fine with that.