I found a hidden difficulty mode while hacking the game for fun after beating it. I haven't tried it out except starting a new char and seeing if anything different happens in the starting town at least.

The difficulty is called "Lar's Bone". You can enable it via the following:
- Open your Divine Divinity game folder.
- Open the \dat\ folder within that.
- Create a new file called bone.000

Next time you start a new game, there should now be a new difficulty selectable called "Lar's Bone".