I'm with Acadian on not touching the difficulty slider. It's just not the right way to adjust the game balance.
Our choices of how to do it are similar, too. Impose a limitation on the character that compensates for the advantage the game gives you. No armour, no archery / archery only, no use of potions, whatever makes sense for the personality of the subject character. I note that the difficulty slider is often used by people who've exploited every glitch in the game to make their character overpowered, and need to get some challenge back. A "quirky build" is more entertaining than that, as it can change your strategy, not just make the fights last longer.
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Mods for The Elder Scrolls single-player games, and I play ESO.
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