Yes. Only damage numbers scale though, so if you're not getting hit you're not getting hit. I can understand playing on normal if you cba with circle strafing. The attack buttons and casting UI are a bit fiddly; BC was much easier on the wrists.You playing on Hard, right?
3rd level was more fun with its fast spiders and some not-so-obvious puzzles. Difficulty seems to slowly ramp up. Taking my time to explore and find as much as possible on my first run as I'm not likely to replay it.