Shortly put, one particular variable hinders your damage. This mod fixes that!
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Compared to the damage potential of mages, warriors and archers are third class citizens. War hammer wielding Orc that doesn't use any magic or alchemy is far inferior to a spell casting Orc, and let's not even talk about races who actually have good starting stats for a mage specialization.
As this video demonstrates, one of the issues is how cruel the damage formula is. Specifically, durability at 100 greatly reduces your potential damage. Less durability is even worse. More is slightly better. This mod fixes that, giving warriors and archers more damage while not affecting the difficulty much - the start will be easy, but by level 10 or so you'll realize that you're not doing too much damage, you're doing just the right amount!
The mod works well enough standalone, but these mods by PushTheWinButton can improve the balance further: