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This is just brainstorming, but here are some house rules to dramatically up the difficulty. I have not tried these, this is just a brain dump. Doing all of these at once might make a for a frustrating, sanity deteriorating game experience.
1. Always play with 8 locations. For each character above 1, add a random monster or barrier to each location deck.
2. If you defeat a henchman or villain, and there are more than 5 cards left in the location deck, the henchman or villain is undefeated. Banish all the boons remaining in the location deck. (This moves the henchs/villains to the bottom without the guarantee that you can't meet them early, and prevents you from capitalizing on their location to acquire more boons.)
3. Upgrade card penalties:
reveal->recharge
recharge->discard
discard->bury
bury->banish
This means damage is all now bury damage.
4. Do not perma-remove Basic boons, ever. Leave that junk in there!
5. No fishing in the box to refill your deck. If you are short cards, tough, hope you find some in the next scenario.
6. Failing a scenario counts as death for all characters.
Mix and match to make the game as tough as you like.
Ideas/suggestions for more or to improve these ideas are more than welcome.
If anybody manages to thrive on "Nightmare" mode I'd love to hear about it!

Orbis Orboros |

Penalty #3 wrecks the game. Having to lose your weapon to use it makes several of the characters unplayable. Maybe if you got rid of the reveal -> recharge part, the rest of it could probably be worked around. Except that arcane casters become a liability without partnering up with a healer. And at that point, why not use a divine caster instead? I just don't think it really works.