I've found Mount & Blade is pretty good on the difficulty setting, as instead of the Easy/Medium/Hard standard you get to pick and customise various sliders to make it more challenging. Ie: Enemy & Friendly AI ability & tactics, ability to scale damage received, etc. It can really change the feel of the game without making it unfair, as at the 'Highest' end enemy forces are able to give and receive the same punishment as you (no cheapness), and are really smart about how they do it too.
But yeah, I tend to shy away from the 'Buffing enemies = higher difficulty' parts of gaming, and in general I'm getting the impression that it's a "Cost effective" method of game design nowadays, where as before I could understand it from a technical limitation point of view.