Thanks I think I'm going for nightmare for FoV. I just played again through Aleroth up to the end of Ego Draconis on hard.
It's really weird, the arena showered me with Epic gears. Now, I have equipment bonus of +6 in wisdom. But I like the idea of going nightmare and at some points lowering the difficulty if need be. (though this injures my character's pride somewhat

)
update: cool! My first encounter in FoV were level 37s vs my lvl 35 on nightmare and the difficulty was just right again.