Picked up Awakening the other week and have been going through it on Lunatic/Classic. Lunatic starts out frustratingly hard, then the difficulty evens out a bit once you have a few characters that can take hits.
Really glad I didn't quit Lunatic in the unbalanced first few levels, because I've always found regular and hard modes in FE waaaaay too easy. Once Lunatic hits its stride, it feels just right in difficulty.
Lunatic+ on the other hand is just bullshit.
"Oh, what's this? An enemy with Hawkeye, Lethality, and Vantage+?"
It helps if you don't think of Lunatic+ as a strategy game. It's a "solve the puzzle" game, like those chess "find mate in X" puzzles. You have to move just right, but unlike chess, you also have to hope you don't somehow offend the RNG. ^_^
Does it make the final boss really difficult? On Normal, you can just rush with the tactician using the Book of Naga.
Also, question: is a physical or magical tactician better? I went +Magic/-Strength, but are there better options?
I...never actually got that far. I'm actually really terrible at chess puzzles. Actually, I'm just terrible at finishing games in general. I've been sporadically playing through the chapters on the second continent for the last year, almost. ^_^
Speed really is king, though, no matter what class you are. As far as physical or special, I think that you can't really say one or the other is "better", per se. Well, except for things like maximizing things so that as many children get Galeforce as possible (because free turns breaks the action economy) and aiming for third-generation Morgan if possible (since children inherit extra stat growth/caps from their parents; a third-gen Morgan inherits bonuses from two generations of parents on one side instead of just one). The only real warning I've heard on character design, apart from never taking Speed as a flaw, is for if you ever do a gish build and combine both physical and magical powers, in which case you do not want to take Luck as a flaw - that reduces both Strength and Magic. Reduce Defense; that literally the only stat flaw that doesn't affect your strength, magic, or your speed, all of which are critical, even though it does make you squishier. It's really only essential to min-max in Lunatic, Lunatic+, and certain DLC maps, though, so it's not something to fuss o'ermuch about otherwise, I think.
Though, between +Magic/-Strength and +Strength/-Magic, I'd have to side with the former in the case of min-maxing. Checking
Serenes Forest, a Magic flaw actually reduces your Speed cap, while a Strength flaw loses Skill. You'd think it the other way around, but...