You're missing the fact that hard mode is actually new game+... and even then, you're going to have to turn it back to normal mode at some point. The long goal is to play through the entire game on hard mode, including bitter black isle... and that's likely going to take many playthroughs to achieve.
That's insane! I've done so many quests and was able to dredge through but it's been teetering on the line between difficult and just plain stupid. Thank you for clarifying.