Agreed. I got bored of the gameplay loop of bulldozing through every fight with reckless abandon because getting knocked out or even killed has zero consequences. Long Rest is more of an inconvenience than a real mechanic that forces you to manage your resources wisely. Boss fights like Raphael are such an anti-climax when you can just spam Help or throw healing potions and he can never hope to beat that because they party simply doesn't stay down, ever. Immersion-wise, it's just not cool reviving someone 7 times in the same fight. If it wouldn't work for a movie scene, it doesn't really work in a CRPG in my opinion. They even put regeneration in Helm of Balduran that revives you automatically so you don't even need a party and just bounce back up at the start of your turn every time. It's ridiculous.
The worst thing they could do to increase challenge is to make another mode where enemies have increased stats. That would only force players to resort to more cheese and limit them to using the most OP character builds and nothing else. They need to increase the challenge through limiting Long Rest and removing cheese like buffed Shove, Help being a free magic heal and the asinine potion throwing that don't exist in D&D to begin with. The fights would be plenty challenging if the game actually played like 5e and players would have to play smart and manage their resources.
As for Long Rest, they need to just remove the pointless camp supplies and figure out another way to make it a meaningful mechanic. That means limiting where and how often you can rest through logical restrictions and stuff like getting ambushed trying to rest in a dangerous location. Which in turn would require some kind of restrictions to teleporting to camp and some meaningful consequences for spending time (fast) traveling back to safe locations. I think the weird "camp areas" that don't exist in the actual game world were a mistake to begin with. Campsites should have existed in the real game world and they should have been the fast travel points.