You have to play rather carefully on master before you get 100 enchanting/smithing, then you can start playing offensively again. Granted, you can certainly still get your ass kicked, should avoid the really nasty stuff. I recommend playing without using potions/scrolls, it is a fun challenge (assuming you don't mind dying and restarting =P) It also eliminates the alchemy/enchanting exploit. Even un-potion buffed enchanting is still damned strong tho, and the game certainly does get easier later on with master difficulty. The real challenge is getting to this point, I am starting off with a dual-wielding orc warrior with the no potions/master difficulty rule, and I have to be very careful, and very tricky about how I approach fights.