Agreed. For sure it removed some excitement from Mistlands. I've played on public-test, so by the time the nerf rolled in I already had a lot of Mistlads gear and items, I could somehow fight the bugs, but the game was back to it's original difficulty.
I think running around Furling camps in the middle of the night wearing troll armor with the padded helmet and only being limited by your Draugr Fang durability made people forget that a game tagged #survival should be a bit challenging.