Death is a part of the game, and it's good practice for Ironman when you can't go back and restore a lost party. Of course, others will tell you ways to save your lost party anyway...There is no side effect to dying in Wizardry 8 other than the normal loss of experience points (unless their resurrected before the end of the battle.) so die away, and feel proud that they fought to the very end.Let's see, with your party I would still try and lure the demons around one of the many outcroppings on Ascension Peak, and even use the elemental to start the fight while you get your buffs up. Use Banish, even if they have eye for an eye up, /you/ are not undead, and it won't affect you anyway. Get Superman on the Fighter and Monk (fighter first) and stark going berserk on anything you can get close to. (I mean berserk, it's the only way to use the fighter, not the only way, but the most effective, especially by your level). The Ranger should probably have some critical skills by now, and eagle strike (if not, get senses to 100 as soon as possible.) and he'll be doing some good damage as well.
Good luck, I hope it doesn't take too many fights, and if all else fails, wander around for a while, there's plenty of monsters on ascension peak to practice on.
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I suggest not running past them, more rewarding to kill them all for 444k exp. ^^ (btw, didn't lose a guy. ^^) This was with a 6 person party, Dracon fighter, bishop, mage, ninja and bishop, and a mook fighter (18 levels of samurai though, changed for giant sword.) All around 18-20 characters.