I believe even with that skill i still fail checks regularly. Also in Driftwood difficulty increases so level 2 might not be that much. It also depends on the skills you are relying on and backgrounds. When certain background is combined with int/wits/str etc check it seems to rather significantly increase success chance.
I on the other hand like to talk my way out of combat. Sometimes, getting it done without weapons can be harder than the actual fight :P + the character I play right now is merciful and doesn't want to kill that much. Though frankly, even though this game's writting is mostly excellent, I have yet to find dialogue similar to for example dialogue with Master in fallout 1. (though I admit it's not very fair comparisson)
As for your problem, maybe you can try more militant approach from time to time, or make different character handle the talking, that may help you with some fails :P or even surprise options.