If, in the past, you've ever used Runesmith to check creatures' stats, you'd have noticed that bandits had very low skills, even in their weapon of choice. That doesn't really mesh with the idea that an untrained dwarven peasant can train to far higher levels with a season or two of sparring. My guess is that bandits just got a slight skill boost that is very noticeable.
Also, "Demigod" is just the number of points your adventurer has for attributes. The RNG can make NPCs that are every bit as tough as you. Really, you're playing as one fairly tough mortal without plot armor.
The thing is- we need a better difficulty system. The difficulty of the game currently ranges between a weak mortal without plot armor and game mechanisms geared towards killing him, (bandits always outnumber the party..), and a fairly tough, (not extraordinary, not superhuman, not even necessarily remarkable) mortal, without plot armor, and game mechanics geared towards killing him.
However, consider: If a player chooses demigod, one can assume they have a vested interest in that character surviving. Having a very difficult start-up period and the constant threat of 'random' death by way of lucky shots is unfavorable for those players, and needlessly so--Those who wish to have the realistic experience would be satisfied with any of the current setups, as all they do is affect starting difficulty, and so would be fine if the upper one or two tiers were instead geared towards those who want to make an extraordinary adventurer, or even one of legends, without having to save-scum and exploit different facets of the game to make it happen.
Yes yes, savescumming is frowned upon, as evidenced by it's name, but this rings just like good old 50s repression. If you don't feel like spending your time throwing characters into the woodchipper that is this game, waiting for one to miraculously make it through the teeth relatively unscathed, savescuming will happen. And I reckon many people enjoy dodging the teeth more than greasing the gears.
Point is-
If Armok wants blood, he may get more if his subjects are satisfied prior to his bequest.
If players can survive long enough to make a name for themselves, or even establish a good legend --without savescumming-- then some players may be more inclined to accept the final blow and give Armok what is seen as rightly due, instead of constantly stolen.
Thus,
True difficulty settings ftw.