I agree that the game becomes too much of a cake walk later on. I see partially for the resistances at fault, while it's kinda epic you can become immune to Earth/Air/Water/Fire easily, and to some extend Poision as well, I feel it kinda breaks the game, not only you can become immune, but also you get healed by it; I feel like stupid AI here is a bit at fault as well, as it will keep attacking you even when it keeps healing you ... at the very least it should "try" to attack differently or renember not to use that kind of attack on you anymore if it doesn't do any dmg or even worse heals you.
Maybe it's also the crafting that wasn't considered when making this, as 2x ruby in your requip can net like 40% resist element on all chars on higher level items.
My lv 16 tank has 50% block, high armor, about 160% resistances (also thanks to 50% boost from the talet), 90% poison and leeches life from his own blood when he gets hit. Pretty much never dies at this point.
It also seems some balance issues with the AI skills are there too, I don't see them using high level spells (or cetain spells) too often, which could be devastating (well, assuming you're not immune!) ... but often they just go melee you or shoot their staffes. Archer use their few elemental arrows but then stop and attack normally; don't seem to use the ranger talents either except for the multihit thing.
Also do the AI skills scale with their level? I could have sworn they use a low level heal (50HP) later instead of the equivalent of ~150hp or so. Also some skills are just laughable and useless like bleed, it doesn't do shit (2-4 dmg, TERRIBLE!!!11eleven), that one needs up scaling so it seriously hurts.
Another problem would be that the AI battles/encounters are predictable. They have the same skills and the same setup every time (it seems anyway), so to get become more unrepedictable would also be to add the ability call reinforcements (they shouldn't give EXP though for balance) [on hard this might occur more often for example], so the encounters get some more randomness too.
Another set of unpredictability is to have some of the enemies in preset groups like melee that choose a random melee type enemy (different skills) or have their skill sets a bit randomized, it means the encounters would play a little diffrently every time (and in addition this would add to replay value).
I suppose the "Hard" penality should be adjusted as well, as it seems to hurt non-mages mostly. The HP debuff is also pretty wierd in the way it works with glass cannon, it stacks up for a total of -75% from original, which makes it useless on non lonewolfs (on lonewolfs it just negates the bonus for a -5% total).
Maybe also offer more difficulty options beyond hard.
Besides from other things already suggested I'd like to suggest non artifical difficulty as well, so that on hard the enemies use more diverse skills the on normal or easier.