Skyrim's difficulty setting is one of the main reasons I can't play without mods. It's ridiculous. Simply adjusting damage is a really lousy way to make the game harder.
I don't need Skyrim to be realistic, what with magic and walking dead and dragons and everything, but I want it to be believable. And whacking away at an enemy with dual axes for a minute is ... just silly.
An axe to the face should hurt. For both combatants. Fireballs should melt flesh. This is why I use mods to increase difficulty.
I play on adept, but have several mods that make combat fast and brutal and immediately deadly, like it should be IMO. Strike first and strike fast or be killed.
I hope console players can soon enjoy a game where the enemies are deadly and maybe even unleveled, where diseases are crippling and progress to death, where dungeons are truly dark, with no little red dots to tell you where the enemies are, no combat music to give you warning, and the enemy AI is a lot smarter.
I love TES games, but balance has never been a strong point of them.