No idea about story mode but balanced is perfectly fine. Just take a look at your inventory and use the insane amount of very strong potions, poisons and bombs you can find all around the world.
I don't think it's realistic to expect 4 guys to defeat a small army without using at least a bit of ingenuity and tactic. You can thunderwave enemies off cliffs, chug down invisibility or haste potions, cast grease and shot a fire arrow on it to make it go boom and deal damage to groups of enemies...
Don't try to brute force through every single fight and use those little tadpoled brais of yours :P
Just got to act 3 by the way. Really enjoyed the challenge of some fights in act 2 so far and looking forward to what the city has in store.