Oh and I noticed a feature that can be exploited to death, and I know I would be using it:
Without the risk of wiping, unless the gold drop reduction from monsters is big enough to really hurt, then I can see my weapons having an endless list of pwnage stats. Is this really a good thing?
That is just the mod authors attempt to allow you to create gear to survive. You can delete that part of the mod fairly easily by taking out the section of the mod related to enchanting. For instance I personally enjoyed the difficulty but did not like the slower levels so I do not use the slower exp and fame gains provided. Don't forget the cost of enchanting pretty much doubles every time and you can still fail to get an enchantment several times in a row so the items don't get that much stronger.
Edit - removing the 2 files called globals.dat should allow you to play the mod without altering your enchant rates at all.
There really is no "balance" to exploit in a single player game with no trading either. Some people use mods that drop all uniques and allow much more enchanting some mods make rare items rarer it is pretty much do you personally want your experience to be harder or easier to taste