How is Losing Possible with this Setup?

[Quasi]

One grounding totem.

Seriously, it will eat your whole lb+cl+ns+lb.

Understanding your own weaknesses is the first step to success in PvP. Tremor is nice, but your spells are still going to get interrupted and some kiting will easily make it difficult for you to face your target. Cleaves/aoe? Grounding won't eat those. Hunter/lock pets with totem killing macros? A healer who knows to spam purge/rank1 instant casts to get rid of your grounding totems?

You're definitely not immune forever. If Ellay was impossible to beat, he'd be WAY beyond the 2k rating.

Ouch, I did not realize a grounding totem ate all five CLs. If I staggered one a millisecond ahead of the others, would it kill it in time?

Personally, I plan to fight as if I did not have totems (while of course using them).

As for healing, I'm going to lay down the 5 healing streams, keep up Bloodlust, and use a mix of Healing Wave and LHW on whatever target they are focus firing, in between shocks and CLs. Five Healing Waves will heal any shaman to full, even with MS debuff. Warriors will always be my first target to kill if they get inside 36 yards, to prevent MS in the first place.

With this approach, I cannot see how any of my shamans will die, barring some insane 3+ Shadowstep Rogue group ganking me with CloS.