I much prefer a nice balance.
I'm bored at games when they are too easy and I get very frustrated when they are too hard.
I like difficulty sliders. And I like it when the easier I set the game, the less xp I gain, the harder it is, the more xp I collect.
The way KOTOR 1 & 2 are made, only the first planet or two can be hard. Since the player can travel anywhere after that first world, all planets have the same difficulty setting. So, as you as you reach a certain lvl, everything is a breeze and it gets boring.
twas the same with Morrowind. After lvl 10-15, you could beat any foe.