The Systems provided by Warhorse are truly a thing of beauty. All Characters follow the same rules, are using the same items and are having the same skills throughout the whole world. This is something that I haven't seen beeing implemented to such an rigorous extent in any video-game as of now. It is a wonder that anything actually works at all. Truly a masterpiece.
But as it seems Warhorse has massively miscalculated how the gamers would act in this completely simulated world. Which leads to many small issues that lead to the utter destruction of the balance and logical-consistensy when combined.
Let's do something about it! ;)

We can probably agree on several points.
The balance in the early-game is pretty close to perfect. Every enemy poses an adequate challenge. The PC is constantly looking for ways to improve his skills, getting more money and better equipment.   
This comes to a sudden stop as Henry reaches a point where basically every aspect of him massively exceeds his opponents. 

You can break that down into 3 main issues:

A. He has unlimited resources. The reasons are:
      - Hunting and selling poached meat
      - Looting defeated enemies and selling their stuff
      - stealing everything and bringing it to the next fence
      - Collecting ridiculous amounts of flowers and selling them (probably the least viable of those and tedious, but still highly profitable nontheless)
   ...making our poor little son of a blackmith into a wealthy aristocrat in no time

B. He is impossible to damage, through the measly weapons most enemies have. The reasons are:
      - Heavy armor exists in abundance and is extremely easy to acquire.
        Either through buying (something we can address by balancing the economy) or through looting / stealing (something we cannot change as of now)
      - Heavy armor is massively overpowered (more on this later)
      - most Enemies having damaged and weak weapons, while our PC is smart enough to actually repair his equipment
      - no Systems in place to penalise wearing full gear throughout the whole game (something that only very few opponents do)
      - Enemies cannot take advantage of their numbers since the game introduces a downtime for their attack dependent on their number
   ...changing Henry from someone who would fly away by the next gust of wind into a bulwark

C. He deals out damage like candy. The reasons are:
      - Broken Scaling of the Weaponskills combined with the fact that no single enemy has these skills maxed out and only very few above 15
      - The best weapons beeing available from the start. Making the weapons of most opponents look like toothpicks.
      - again Enemies having damaged armor, while our PC keeps his items in check
   ...letting Henry one-shot even the best of his enemies

Basically we can sum it up by saying that the PC has far to many benefits while the NPCs have to deal with far to many penalties. Not even mentioning Perks, Buffs, Potions etc etc.
So what this Mod is aiming to do, is to offset as many of the penalties of the NPCs as possible. While introducing as many penalties to the PC as reasonable or to at least shrink his advantages.
Sounds reasonably easy, doesn't it? 

Further on I will provide an explanation to the particular changes provided by through mod:

1. Weaponskill-scaling disabled
The standard enemies of the game like Bandits, Cumans, Guards etc all have an estimated Weaponskill in the range of 10. There are plenty of oponents that go even lower than that. While only very few bosses and rare enemies seem to exceed that number. Although Henry is able to achieve higher Skilllevels within few hours giving him an unfair advantage. To make matters worse the Weaponskill functions like an exponential multiplier, making the damage-output climb skyhigh by levels of above 15. At that point there is no armor in the game, that can stop Henry from one-shoting everything that comes near him. Making many gamemechanics like combos and different weapon-types unusable or at least unnecessary.
As of now simply disabling the weaponskill-scaling is the only known solution to prevent this from happening. Leveling the playing-field between PC and NPCs since this also effects enemy-damage. Nonetheless leveling the Weaponskills remains still advantageous for the PC, giving him access to Perks and improved timings.

I have found another way to achieve exactly that. But it is not well tested as of now.

2. More aggressive enemy-groups
As explained above, enemies cannot take big advantages of their numbers because of an Attack-delay. The mod reduces the delay to 50%. Making it far more dangerous to engage big enemy groups unless they are preoccupied with your allies. The change is not big enough that small groups become unbeatable, but they will keep the PC on his toes nonetheless.

3. Increased influence of armorload to movementspeed and staminaregen
This is a very needed change to the core game. Since running or fighting in full-gear had nearly no penalties for Henry when compared to beeing butt-naked. The measured difference was somewhere along 5% and had no impact whatsoever. Making it far to feasible to simply leave the armor on at all times. Now the change between wearing only light armors compared to full-gear is roughly about 25%. Which doesn't sound like much, but is extremely noticeable. 
And since Henry is the only one ridiculous enough to run around in as much equipment as possible it has a way higher influence on him, than every NPC. Also the difference between medium-weight gear compared to light gear is far smaller than between medium to heavy gear since the adjusted value seem to work as an exponential multiplier as well. Additionally it complements the next far more important changes.

4. Balanced Armor-weight according to price and defence-rating
This is propably one of the most important and most complex changes introduced through this mod that you will not find in any other Balance-Mod. 
The gamebreaking Problem is that the game defines the quality of an item exclusively by their respective price and adjusts every other value according to that. So the higher the cost of an armorpiece, the more the defense it provides but also the lighter it becomes! Introducing the Nurembergian cuirass. The best piece of armor in the whole game according to the Defense while also beeing the lightest Chest-piece apart of some clothing. While this may be historically accurate as some people claim (although I highly doubt that a sturdy chestplate would weigh half as much as the lightest gambeson) this type of balance completely breaks the game. Especially if we consider the fact that you can get your hands on plate-armor very easily and even by accident. There are even several pieces laying around in the woods throughout the whole gameworld. 
Therefore I have compiled a file of every piece of armor among the subtypes (so basically: Legs; Arms; Head; Chest) and compared their values. Most of them where well balanced and needed only slight adjustments by an added kg here and there but nothing drastic. Pauldrons needed to be adjusted a little bit more thoroughly, but nothing to extreme either. I thinks the biggest difference is a change of 2kg. Helmets where left completely untouched. And while Gambesons and chainmails and everything that comes into these slots had a reasonable balance throughout. Chestpieces in the Plate-Slot where a complete mess!
Here is how I sorted that out:
I defined the Quality as beeing the ratio between defensive stats compared to their respective weight. And defined the degree of Quality according to price. That lets the most valuable armor-pieces in their category provide the most defense per kg while mitigating the extrem differences between particular items.
Pretty much every Armor piece seemed to fit in the range between 3 to 5 defense-points per kg. Apart from a few pauldrons that reached values of 8-9 and heavy-armor chest pieces reaching values of  well over 13. It is obvious to see why this isn't the way to go. After the changes the most valuable armor-pieces now provide a ratio of 6 defense per kg. While the cheapest provide around 3. I also established slight boni to the BiS armor-pieces and small penalties to the worst ones. ss
On the gameplay-influence of all this:
Wearing full gear is now far more difficult or at least more tedious and only really feasible at higher STR-levels or at certain parts of the game (like the sieges). It also makes far more armors a viable option since there no longer are any armors that are 400% better than the rest. It also complements the changes made to movementspeed and staminaregen. Most importantly it levels the playing field between PC and NPCs ones again.

5. Reduced Prices at fences
The changes made to other shops are not worth mentioning at all. 
While the selling-prices at the miller are now reduced to around 50%. Which on the one hand is far more realistic, since they take on a far riskier investment, while also improving on the balance of stealing. Winwin

6. Reduced HerbgatherXP and Radius
Only incremental changes made here upping the tedium of this money-making choise without influencing anything else, since the PC gathers far to many ingredients to be actually used anyway. 

8. No longer Blind enemies
The Game defined the min-visibility of the PC to a value of -2. So with a sufficiently high stealth-skill and a few perks it was manageable to run through enemycamps without being spottet. This led to a couple of other oddities like NPCs that are currently fighting the PC loosing him out of their sight although they just have taken an elbow to the chin a second ago... Completely broken. The value is now 2 and those situations occur far less often.  

The other changes should be pretty self-explanatory. I will keep updating this Article as soon as I have the time or implement more changes.

Thank you for reading!