Yeah, it's really hard... if you play it straight. If you take advantage of the fact that you can absorb every single area effect spell you cast, it's really really easy. I'd say doing that is the only thing that can make Daggerfall too easy.
Well, that, and min-maxing a custom build, particularly when choosing both "Critical Weakness to Paralysis" and playing a High Elf (which negates that weakness).
With Daggerfall newly released as a free download (I really wasn't expecting that), I'm gonna have to go ahead and take that challenge. Hopefully, there'll be more people in this forum. And yes, I WILL be posting in the "What did you do today?" thread.