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The point of all that is, (if you're interrested in backgrounds), raising difficulty makes wheapons and armor more and more useless, some caves with 3x difficulty spawns become nearly unplayable, and for killing high lvl dinos, you get more XP, what is one of the biggest problems with other mods that use max lvl 600 or higher like Annunaki, because first it's hard to kill even a lvl600 dodo to get some hide, and only a few hours later people start power leveling by killing lvl600 paras, ptheras and others.
And if you do a perfect tame of a lvl 600 creature, your unleveled dino is 900 after taming, so the high amount of bonus lvls on high difficulty values destroys the balancing against wild creatures
So psycho designed his mod for vanilla difficulty, trying to make the whole playthrough challenging but senseful.
People can feel free to raise their servers difficulty to whatever they want, and maybe try to copensate balancing issues in other ways, but best way stays playing on vanilla difficulty.
Hope that answered your question XD