Compare that to the difficulty settings in System Shock 2 where harder difficulties would reduce your base HP/PSI and reduce the amount of HP/PSI you get per endurance/magic upgrade, increase Replicator costs, increase upgrade costs, reduce enemy item drop chances, and make resource management more of a top priority than it ever was on Normal, whereas some chucklefuck at Arkane thought that it was combat that is the deciding factor for difficulty in a game where you're carrying loads of healing items and ammunition at any time, and thought that by making combat harder through making you weaker and the enemy more resilient would change the way the game is played and give hardcore players what they want.
Imagine that, how difficulty settings in Prey could affect item crafting costs, ramp up skill costs, and screw with your health and PSI in the same way SS2 did. That's not something I imagine is hard to mod.
SS2 did difficulty levels better than Prey but in truth, cutting your hp in half is not very different from doubling enemy damage. One shall also not forget that the humble wrench allows you to kill many enemies with zero resource investment, because they won't actually fire at point blank range (iirc: bots, midwives, shotgun hybrids, grenadiers).
Reducing xp points gained is also a nonfun kind of balance in my opinion, as it just means it is even better to take the strong skills (like standard weapons), while ignoring the less powerful options.
Increasing shop costs and decreasing drop rates(but iirc it doesn't really apply to the research organs, which is good) is very nice though.
Prey should have added reduced efficiency of the recyclers for sure, since the trivial mass production of both ammo and xp really snowballed you into having 2 full stacks of all healing items by the midgame.