No one said anything about higher rewards on higher difficulty levels (versus on lower difficulty levels). But difficulty comes in many potential varieties (availability/affordability of weapons/armour/supplies/repairs/healing, and amount of enemy parties and their numbers/equipment and troop types). Difficulty could also come in the form of the stats and perks of enemies faced, but these things seem to be identical at all difficulty levels. What we were both saying, I think, is that it should be quicker and easier (on all difficulty levels) to build/repair/heal, but that the pervasiveness/numbers/equipment/skills of enemies faced at each level should be increased. That way, the greater challenge faced at higher levels would emphasize the more enjoyable aspects of the game, rather than the more tedious aspects (e.g. waiting, retreating, running petty errands).
That’s a good point. I agree that game still needs a lot of gameplay balancing and maybe some features. Personally I would really appreciate possibility to fast repair armor for crowns in cities.