You guys rock! I tested this on a small file and it worked perfectly. I'm going to run it through a larger file now and see what I get.
As far as why groups, I find them useful for quickly attaching objects together for moving / copying etc. Also, for this specific case, the client imports entire files / projects from Vectorworks. During the import / export, all of the objects come in blocks, with a solid hatch background for each "part" of an assembly. These solid hatches are huge. If I explode all of the blocks, each "part" is broken down to lines, essentially an entire drawing of lines on the same layer.
By exploding the objects and grouping them, they can more easily manage them and delete the hatch objects while maintain the "parts."
After running this on a large file, it has to be re-run a few times to explode & group all of the nested blocks.
After I finish this I'll be hosting it on my blog macncad.com so anyone needing it for AutoCAD for Mac can find it. Thanks again everyone for all of your help!