This is my number one gripe with the 3rd iteration of the series (as well as Avernum 6), it really takes the fun out of the games for me. I'm currently a third of the way through Ruined World and it's really disheartening to see 60-70% of your damage just being flat out resisted by monsters that are significantly weaker to you. It feels like as you level and get stronger you get less and less power for your levelling as the resistances seem to take larger chunks out of your damage. Currently have a party of level 15's, 2 warriors and 2 spellcasters and around 7 or 8 i started to hit my stride and drop 70-90 damage on some mobs (either sword or spell) and I'm still sitting around that now 7 levels or so later, just with about 120 damage resisted on top.
Granted, in Avernum 3 it was far too easy to hit the damage cap but even on torment, especially if you played a singleton it made it challenging enough for me, I love Av3 and played it to death and while I can't go back to squinting at a tiny screen or losing the junk bag or being able to click to move around the map, there are a few things I will miss about it (like I missed things from Exile 3 before it) but the resistance mechanics just make combat feel sloggish and at times tedious.
Sorry if this is a necro, it's only a few weeks old.