I actually restarted the game AGAIN and went with a full physical build on tactician. True, I'm not a fan of simple stat boosting, but even with a 2/2 team, classic mode was a bit too easy. I just came up to Kniles and smacked him over the head on lvl 4, with my entire group standing there together like idiots and still won the fight without using a single rez scroll. But the fight with Griff at lvl 3 on tactician was really fun - still not super hard (probably because Waltz was out on the town) but it required much more planning than classic mode.
And it's true what people say, gear can make you MUCH more powerful even at such low levels. Skills, too. With restoration on my cleric type red prince, migo's ring on my summoner and first aid on my Lohse ranger (who also found a sweet lvl 4 crossbow that does like 12-14 dmg) and Butter helping on top of that, we were pretty much unkillable. I need to replay that fight with Waltz in the house.
And I loved it how - when I reloaded the Kniles fight and switched to tactician - he just turned my 2H into a chicken and rolled me so horribly. It was basically a 'rhino vs shopping cart' type situation.