I'm still in Defiance Bay, Path of the Damned, only Obsidian's companions. Party at level 7. Playing on 1.04 since they nerfed Fan of Flames, Blizzard and Stag's Horn, I don't like when things I'm already used to using get nerfed.
Was quite difficult before I reached Defiance Bay, had to leave the second floor of the Eothas temple and Raedric's fight for later. Maerwald's fight was also quite challenging, had to try it several times. And I cba to deal with all of the ghosts in the courtyard, sneaked past most of them to get to the keep's entrance (despite some in my party having no points in sneak, it wasn't particularly hard to pull off), only had to fight a couple.
The difficulty has been mostly trivial since I got to Defiance Bay though. Have done most of the quests that can be completed without leaving the city, haven't done much else. Came straight to Defiance Bay after killing Maerwald. One fight I couldn't win after a a few times and left for later is the one on the bridge , from the quest you get from the Vaillian ambassador. I tried this fight at level 5, also the difficulty is magnified here by the fact that they take control away from you in a cutscene and have your pc waltz up to the enemy group, fucking your positioning up if your pc's not a melee character.
Last night stopped playing in the Lighthouse (didn't tackle it earlier since I fucking hate shadows/shades/ and it seemed p. obvious that a haunted lighthouse would have them) when I triggered the fight there, this also looked like it could prove difficult. Caen Gwla and the knights was a pretty cool fight, they put up a decent fight but I still did it the first time. Some other fights were kinda challenging too although by this I mean (as far as Defiance Bay is concerned), need to think and use a bunch of spells but will still win the encounter on the first or second try. Since I've armed most of my group with firearms, quite a few encounters can now be won without using any spells, only sending Eder and Ithumaak (Ithumaak gets knocked out p. fast usually) into melee and having everyone else shoot. The AI looks pretty dumb, often (maybe most of the time) it engages only Eder and Ithumaak who I have a few steps ahead of the others, the others can blast away in peace. Enemy stats seem right on POTD though, they don't feel bloated, feel adequate. I haven't tried the other difficulties but I get the feeling that the enemies would feel weak without POTD stats.