"It seems to me that the lightning strike has a much reduced chance of hitting."
It didn't seem so bad with my first Felpurr Samurai. Then again, that was on Normal mode, and Mutt was on Expert mode. Still, it did pay off, especially once I got my elf rogue 2 thieves daggers and let Mutt use Bloodlust. Then those lightning strikes turned the tide a couple of times. One other problem with him was that he was the only non-stealther in the front line (which was actually the center) and got hit a lot. Now that he has a Giant Sword I put him in a flank.
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