Yea your damage on your weapon/s is way low, far to low for this far in the game and your level.
Find a better weapon, just scroll over them in your backpack and look to see if you get green text over damage, that means it is better. Red means it is less.
Same thing can be done in merchants, scroll over them and see if the damage is greater. Look for weapons you can enchant and add charms to as well, unless your going for a pure warrior build then look for weapons that have high regular damage.
If using magic damage as well then some stat points in intelligence will up that damage.
Skill points in mindread make it cost less EXP though so there is a benefit. I only went up to 3 though for a 25% reduction in EXP cost I think it was. I received lots of skill point and stat points from mind reading so there is a benefit to mind reading.
Heck that wizard guy you go to get the shield from in Aelorth gave me like 7 skill points over 3 mind reads in our various meetings.
Just about any high ranking or important character gives you a point or points in one or the other.
I read every single person in the game I could and almost got to level 36, just a couple kills shy. I just took EXP instead of weapons or something if given the choice for quest rewards. That offset the cost of mindreading plus some in most cases.
Probably would of got to level 37 if I did not level up so high before going into Orobas fjords. All those creatures and black ring in there only gave me 32 EXP total each because I was so high above their level.