The game did get easier as it progressed, unfortunately a little too easy at the end. I was looking forward to fighting Josephine again, based on the trouble some other people had, but she didn't put up as much of a fight as in the first encounter.

Scorpion traps are very over-powered, so their use will make any fight easy.

There has been no official news about DD2, other than a few tidbits (mostly in the 'Our next RPG' forum). DD2 will continue with the DD story line, presumably at least 20 years later (ie after Beyond Divinity).

There were links to a couple unofficial announcements (perhaps no more than rumour) in the Release Date topic about a 'well known Belgian team' (that may or may not be Larian) developing an RPG with a projected release of early 2009. Even if these sites are wrong, or refer to a different company, Larian still has job openings listed, so that is not an unreasonable time frame (though they could just need a few odds and ends done, or be hiring for other projects).