I am currently playing multi-player with 3 people because making the game a bit harder has improved our enjoyment of the combat.

This all really depends on your experience with similar turn based games. It is far more challenging then most RPG, but quite a bit easier then "Classic" difficulty XCOM.

This seems like a reasonable normal difficultly, at least to me and my play group. Adding an both a new player and experienced will be welcome and is likely coming.