Yes, I presume that's incoming 17k req/sec. Each incoming request can then lead to many database queries/memcached queries/etc. It would be more insightful if request/response sizes were also known.
A possible disaster scenario: connection issues with the SMTP server are causing the initial exception, resulting in webserver connections that are open for excessively long periods of time (unless you're sending the emails asynchronously), since the process is blocked first on the failed SMTP connection, then again on the exception email attempt (and you're still not getting any notification that something is broken, unless you're doing some other kind of monitoring!)