I've decided after probably 60 hours of gameplay and replaying Riverwood/Whiterun/Riften storylines about 10 times with 10 different characters that I am going to be waiting until Feburary to start playing the game in earnest.
A month after the CK comes out and hopefully more mods than I need to create the game I had hoped it would be.. More balanced and I can tailor it to how I like to play. Then I can experience the story while feeling like the game is a challenge rather than me trying my absolute best to gimp myself for fear of me one shotting everything.
Until then, C'est la vie Skyrim.
PS - Love the game, just not without mods.
Honestly, Skyrim isn't any different than previous Elder Scrolls games when it comes to difficulty. In previous games, there were tons of features you could abuse to make yourself invincible if you wanted to.
Hell, in Oblivion you could run backwards while casting spells and shooting arrows and almost nothing could ever catch you if your speed was high enough. Magic was super easy too, once you unlocked the arcane university you became a God.
In Morrowind you could max almost all your skills near the starting area, and once you start enchanting stuff you became a God very quickly. Really, Morrowind was one of the easiest games to break. Once you leveled to about 45 or 50 there was literally nothing in the game that could hurt you.