You can fine tune the difficulty by having less pawns. Starting from scratch on hard with no pawns is harder than anything I've ever played.
You can get very good loot from soulflayer canyon, but each treasure box and gathering spot has a fixed drop list, the better items have a lower drop rate etc. You have to farm each spot by kill yourself in order to get the best loot.
I was thinking of doing that after i beat the game. Doing a hard mode run with just me and my pawn. I just thought the game would be as hard the beginning was so I was a little disappointed when it wasn't. Basically all i do is just run up to monster and spam hundred kisses and they die in like 2 seconds. I don't even have to climb most enemies anymore. I think I may have gotten a really good drop on these daggers I'm using though. The Ar on them is 457 and nothing else in the shops is comes even close to 400 yet. So I might have gotten a little lucky on the drop I'm thinking. I didn't know loot was randomed like that until someone else told me. Wish I would've known that before. I would've went in there with just my pawn to get better loot. I guess i can go back later since chests seem to respawn after a few days and try again.