Solves the main causes of Skyrim's balance and Scaling problems. Each increase in rank of difficulty is a tradeoff. You gain 20% damage for each rank, while the enemy gains 50%.
Master Vanilla: Player 50%, Enemy 200%
Master ReScaled: Player 140%, Enemy 200%

Increasing the Enemies Health and the Damage they deal is probably the laziest and worse way possible to increase the difficulty of the game. It makes it impossible to balance the game around both Adept and Master (you can only pick one). Destruction and Two handed weapons which requires you to kill enemies fast becomes so weak it's no longer viable in vanilla. People end up making mods to compensate like making destruction scale 2x or 3x.

All of that is actually unnecessary if you make the difficulty settings scale in favor of both player and enemy (just more in favor of one than the other), instead of creating this wide artificial gap between damage given and taken.

fDiffMultHPByPCVE 0.5
fDiffMultHPByPCE 0.75
fDiffMultHPbyPCN 1
fDiffMultHPbyPCH 1.2
fDiffMultHPByPCVH 1.4

fDiffMultHPToPCVE 0.75
fDiffMultHPToPCE 0.85
fDiffMultHPToPCN 1
fDiffMultHPToPH 1.5
fDiffMultHPtoPCVH 2

fDiffMultXPE1.0
fDiffMultXPH1.1
fDiffMultXPN1.2
fDiffMultPVE1.3
fDiffMultXPVH1.4

fLeveledActorMultEasy1.1
fLeveledActorMedium1.15
fLeveledActorMultHard1.20
fLeveledActorVeryHard1.25