Heh, I remember figuring that out back in the Exile days. I'd raise luck as high as I could early on and breeze through the game. Sure, things might take longer to kill but who cares? I could walk across an entire lava lake with 0 health and still survive.
Plus, it made for a funny roleplaying scenario in my head: a group that's completely weak and incompetent bumbling through epic adventures, faring way better than they deserve.
*trips over stick that somehow flies up and lodges itself into Grah-Hoth's windpipe, killing him*