To add to this, that is how DOS works to. You have to look at the level of your enemies in comparison to your level. If they are above you, that is telling you, there is somewhere else for you to go first and get exp there then comeback. That is very old-school and it does tax the gamer to use mind/patience. If you are under-leveled that is a big penalty in this game.
Even with underlevel, you can still beat hard encounter too if you know what skills are ridiculous and can be abused as a mean of hard counter.
Here's one, Evasive Aura. Slot a source orb into your necklace (Get it from the guy in the ship. HE sells it for 10k something but it's actually worth only 2.5k as its actual price so it's not hard to steal multiple copies of it)
Every situation so far has an answer to them.
Understood, but it is a general DOS 1 and 2 tip, if you find yourself under leveled, you most likely missed something, go there first... OR... try something new and learn a new trick!
DOS's give you a CRAZY amount options per round, probably too many. My guess is they can't balance it because of this, so that is why lower difficulty levels can become very easy to beat. They have to A. make sure people of all types can beat the game and B. as you get better, the gap between you vs AI grows to the point it is comical.
The mod potential for both games for a Master Balanced version is large and some have attempted it with good results.