Yes, it is broken, but not as a 3rd lvl spell. An avg of 3 enemies on a fireball is good to calculate, so it deals 69,3 avg damage ((28 x 0,65 + 14 x 0,35) x 3). At 3rd lvl, summon fey deals 8,45 (13 x 0,65) per round, so its like 8 rounds to be equal. Considering that its still 1 more creature at your side, that has hit points, i would say its balanced compared to fireball at 3rd lvl. The problem is the upcast, that just DOUBLES the damage of summons on even levels (like 4th). So it becomes 18,2 damage per round, way better than any normal fighter at 9th level (without considering limited resourses). Summon spells at even levels make martials feel dumb, its ridiculous.
never used a fireball unless it's 5+ and the "boss" MUST be in the AoE, otherwise it's almost a waste of a slot.
now, one thing that has to be calculated in, is that all summons(except some subclass exceptions) are Concentration based.
that means it prevents having some other spells that can control the battlefield better.
it also means that you can lose all that with taking 1 point of damage.
Wand of magic missile anyone? best Conc breaker in the game for cost. Just use 3 charges for 5 checks at DC10.
as for it's own HPs, well that is a bane and a boon at the same time,
it's good when you need to soak some AoO or some traps, but anyone with half a brain will avoid damaging the spell and go for the caster or someone else. but, if enemy has cheap source of damage and all others are out of harms way, then it's just an added dispel mechanic for everyone to use against it.
as for spell levels of the spell, it should be counted round-up for numbers of attacks, so that you can make 1st, 3rd and 5th level Summon X spells, and have incentive later to use 9th level slot on a Summon X, every DM would be very happy with 9th level slots being used on Summon X.
When you thing about it, every DM is more than happy when casters use their spell slots for damage spells.
#buff all damage spells.
also, upcasting of most damage spells is compete rubbish.