I agree with the concept that being underpowered compared to the enemy will often allow victories to carry an additional sense of accomplishment due to the sheer odds against the player.
On the other hand, there always needs to be room for the player to have a palpable increase in strength as they progress.
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Agreed obviously you do have to have a goal and something to look up to but imo we were to strong at the end in d1. Raids were easy and not dying with a competent team was easy. There does need to be a sense of being strong but that always needs to be balanced by something better than you.