Two mods that go together, but I built them separately for flexibility.

Values are shown on screenshots

Armor edits: To go along with edited difficulty armor scaling has been significantly altered.
Vanila each armor point reduces dmg by .15%, now each armor point reduces dmg by 0.06%
Making armor roughly half as effective as before.
Things CAN and WILL die very very fast at lower difficulties(You will die very fast too)

The armor cap has been reduced to 75%(Magic resist to 70%) You will need roughly 1250-1500 armor rating to hit that cap(If I get enough requests I will add a hardcore mode)
farmorbasefactor set to 0.05 (lowered)
farmorscalingfactor set to 0.06 (lowered)
farmorratingPCmax set to 1.5 (lowered)

These values affect you as well as NPCs the same way.

Partner mod to : http://www.nexusmods.com/skyrim/mods/61130/?