I don't think we need a higher difficulty setting as much as we need AI improvements and balance improvements. Resistances, Leech, and Sneak stand-out as pretty bored at the moment.
Honestly i think we need both, but i concur, AI fix (i use the term fix as i consider that the level of ineptitude displayed constantly by the AI deem it as broken) should come first.
I have nothing against the concept of "sandboxing" your own challenges a bit... but you should come to that after multiple playthrough on a game you dearly love. DOS is leaning more toward the point where i am wondering if a well educated yet totally drunk monkey could complete it.
As of right now i restarted my game 2 times in desperate attempts to battle the overwhelming boredom that comes with futile difficulty, non existing challenge and flat out feeling of pointlessness.
I am currently playing a Grand team of 3 (no lone wolves) including a naked ranger wearing the pumpkin helmet, some kind of tanky warrior which i limited to 50% base elem resistances and god be damned Jahan (i am a mage player i can't help it) which i have not respeced in any way. Ain't enough to make it a game.
I have yet to discover the level of hindrance you have to push onto yourself to make things interesting but i already know it ll be beyond ridiculous.
I am at a loss trying to figure out why gaming sites give this game such positive reviews while acknowledging the weakness of his narrative which happens to be his lone saving grace.