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Well, Master difficulty proved to be Pandora's Box.
Basically, the difficulties are as such:
Adept: PC does 100% damage, NPCs do 100% damage
Expert: PC does 75% damage, NPCs do 150% damage
Master: PC does 50% damage, NPCs do 200% damage
Melee combat on Master is simply AWESOME. The damage modifiers lead to a give-and-take tactical battle that is very fulfilling.
However, after reaching about level 6, the random wandering bandits and soldiers became random wandering mages, novice vampires, and FLAME ATRONACHS. I couldn't even close on them - instantaneous death.
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