This post got some traction despite being needlessly incendiary, so I'll post on difficulty here.
I agree with the CONTENT in OP. Especially with regards to abilities that make the player immortal. It doesn't matter if enemies get 200% more damage and health if the character is literally immune to their attacks, and can do massive damage multiple times per encounter.
Please understand that I'm not a min-maxer. Frankly, I think that there should be overpowered abilities and weapons; if anything, the original Pillars was too "balanced." That said, I think that it's fair to fine-tune certain overpowered abilities. Players who desire a sense of overwhelming power can just play on a lower difficulty and achieve that feeling there. Currently players looking for a challenge are required to ignore content and play a less complete game (i.e., intentionally avoiding abilities or entire subclasses). I'd like to be able to use all the abilities and STILL feel like I have to pay attention and occasionally struggle.
Anyway, it's up to devs to make the game that they want to make, but there are five difficulty levels in the game, I assume for a reason. I think Veteran should be made somewhat harder, and Path of the Damned MUCH harder.