Upon turning level 57, I increased the difficulty to master. I just couldn't take it anymore, and I was finding too many potions of ultimate healing, essentially rendering me invincible. Bear in mind, I wear Ancient Nord Armor, and use Ysgramor's shield and an Ancient Nord Sword, (called Kohlar's Blade of Nordic Ice). Though it's all enchanted, these are far from being the most powerful articles in the game, yet I'm still hacking everything to oblivion. I even made legendary my blocking and heavy armor, and they're quickly on their way back up. Forelhost on Master was refreshing, I actually got to drink several of those delicious healing potions.
Boasting is not my intention, I was just wondering how the rest of you feel about difficulty. Do you do anything to limit your power, or do you just turn the difficulty all the way up? Or both?
Well, depending on the DLC's you have:
Once I get around level 30 to 40, I pump it up to Legendary. Definitely fixes a lot of things.
I've also heard of people making their offence skills legendary, or armor, or both! But you said you've done this? Have you tried doing it to your block, offence, and armor all at the same time? I still haven't tried that yet, because there's no going back....
Another option: Do you have Dragonborn DLC? If so, a the end of the main quest, you have an option to gain back all the perks on one tree (costs one dragonsoul and is unlimited). That way, for example, you can take away all of your armor or offence perks. Or both. That way you won't have any increase in damage or armor rating. It will be solely based on your weapon and armor base damage/armor rating.
Do you have enchanted weapons and armor? If so, you can try ditching all of that and get some armor/weapons with no magical advantages. You can try downgrading your armor and weapons as well. For example if you were using Daedric or Dragon weapons and armor, you can downgrade to steel weapons and armor.
You could even disallow yourself from using healing potions... but that's more extreme lol.
But typically Legendary always solved my problem as it made it more fair. Because legendary in the beginning is no where near fair and every bandit you come across may as well be a God. But once you get up to 40 and beyond, Legendary for sure if you have that option.