I'm level 15 now and I have to say that there's absolutely no "Bloated health and armor" issue so far.
Here's my current stat.https://i.imgur.com/BMcHgYg.jpg
At level 15, my highground normal crit shot does 1000 damage with a legendary crossbow. I have two of them btw so that means every turn, I can focus fire whoever I want and deal 4000 damage right away if I crit on all of them, or 2600 if I don't, not counting the damage Red Prince has to offer with his ridiculous 2H damage.
I respec necromancy out and make my Fane a pure utility tank with Geo, Hydro and Leadership. This gives my whole team ridiculous dodge rate and resist outside Fane who has way too much defense because of the legendary gears he's wearing.
Combined with Evasive aura, enemies just outright press the end turn button. It really tells you how op the combination of Leadership + Evasive aura is that AI decide pressing end turn is the most effective action to take.
So if you're still suffering from the whole "I don't deal enough damage while I get 100-0 real fast", try taking notes of what NPC sell what legendaries because each of them will often sell the same 2 or 3 type of legendaries over and over. In that hour or two to get to the next level ,you should be able to visit all of them and update 60% of your legendaries while stocking on a bunch of useful scroll and arrows.
They even give you random rich trader as you do quests sometime just to give you another source of gold for a quick reset-thievery so you really have no problem with gold in this game.