LyLo doesn't mean Town barely holds majority. It means if a non-Mafia is lynched, the Town doesn't win (i.e. ties or loses).
Let's say for example we have five players and two Mafia:
Anne - Vanilla Mafia
Bob - Vanilla Mafia
Charles - Doctor (can protect self)
Dick - Serial Killer
Earnie - Vanilla Townie
By your definition, this is LyLo.
However, Earnie can be lynched, and Bob and Dick are killed at Night, leaving Anne and Charles. Thus, a Mafia-Townie tie.
Earnie can be lynched, and Bob is killed at Night, with Dick being protected by Charles. This leaves Anne, Charles, and Dick. If Anne is lynched, it is a tie between the Town and Dick. If Charles is lynched, it is a tie between the Mafia and Dick. If Dick is lynched, the Mafia win.
Now imagine four players with two Mafia and two Serial Killers. xD
Let's say for example we have five players and two Mafia:
Anne - Vanilla Mafia
Bob - Vanilla Mafia
Charles - Doctor (can protect self)
Dick - Serial Killer
Earnie - Vanilla Townie
By your definition, this is LyLo.
However, Earnie can be lynched, and Bob and Dick are killed at Night, leaving Anne and Charles. Thus, a Mafia-Townie tie.
Earnie can be lynched, and Bob is killed at Night, with Dick being protected by Charles. This leaves Anne, Charles, and Dick. If Anne is lynched, it is a tie between the Town and Dick. If Charles is lynched, it is a tie between the Mafia and Dick. If Dick is lynched, the Mafia win.
Now imagine four players with two Mafia and two Serial Killers. xD