Instead of adding another difficulty (which would be pointless if AI wouldn't be significantly improved) just add a more realistic option where resources would be scarce (potions and scrolls), we wouldn't be able to rest as often and saves would also be limited to camp sites only + the moment we would turn the game off. That way most of the broken builds would be nullified (e.g. wizards wouldn't be as powerful, fighters wouldn't be as invulnerable, etc.). Oh, and get rid of all he junk and empty containers while you're at it.
Anyway, Larian games were never that difficult. If you want to play good challenging RPGs play Colony Ship, Age of Decadence, Jagged Alliance 2 (and 3).
In Act 2 I died because in the shars temple the lift went down but my character stayed at the same spot and I falled to death. So iron man or hardcore mod is bullshit in any game what is not 100% bug free. If you fall into a glich this mode suddenly is a feature that is pointless. (I will also post that video)
And I dear to challenge you to play Beyond Divinity and Divine Divinity and come back here and say that same sentence. That Larian games where never difficult.