Jemolk: Speaking of multiple methods and the mentioned bit about how getting far enough away breaks combat, that makes me think -- if you have only one character there and they turn invisible and move off at full speed, what will the Death Knights do?
I'd imagine that they would resume their patrol on the same path, after you've fled. So it wouldn't be all that useful, since you could pass by them invisible outside of combat, too. The problems I had resulted from 3 out of 4 of my characters not being able to turn invisible (except by using a potion, of which I had only two), and that casting spells (e.g. to remove the minefield before someone with pathfinding issues walks right into it) cancels invisibility. I would have loved to be able to interrupt the death knights' patrolling by blocking their path, but it seems that this is impossible or at least very unreliable and can lead to worse situations.
Anyway, now that I know of multiple methods that can get you through this level, I still think this part is too restrictive and not much fun. Even if you know what to do, it takes a lot of time, patience and frustration tolerance to execute it (unless you already have what it takes, e.g. 4 characters with the invisibility spell or really good sneaking abilities, or at least 4 invisibility potions, and an idea where you need to go). And the freedom you have in what you can do can also get really restricting and confusing when the game expects you to do specific things without giving you any hints about it. I felt similar about that part where you can only reach Nick by teleporting a character across a gap, or by doing another quest first, which supposedly opens up the way to him later on, but you have no way of knowing that. Maybe a small thing like one character saying "This is a dead end, we need to find another path around it/let's return later" or similar could have eased the frustration a bit. Especially in co-op mode it's not very cool if you get stuck like that. We were able to think of teleporting ourselves, without checking a walkthrough first, but it felt a bit like cheating, and I wish there would have been better alternative solutions (this is like clever players finding an exploit, not something the game should expect everyone to do).
Since I explored the mine level a bit more after I gave our characters invisibility, I realized that there are a few warnings about the death knights and how to deal with them, but it's very easy to miss them depending on where you go first and what you do with the goblins (my co-op partner spontaneously decided to blow them up, thereby killing the imp that could have warned us; fortunately we seem to have reloaded at some point after that, so in the savegame I was using the imp was still alive and I managed to free him).
Maybe that part with the death knights would have been a bit less frustrating if you had better chances to get away from them without having to rely on specific abilities, e.g. if they would walk slower and/or ignore you at a certain distance even if they can still see you. The way it is, as soon as one spots you, you can just as well reload the game, because it's almost certain death. Just like in those stealth games where it's game over as soon as you're spotted, and that's not my idea of fun. At the very least, if I'm forced to play stealthy and observe patrolling paths, let me zoom out more so I can actually see them coming from off-screen. The walking sound alone is a bit too vague to know where they're coming from and how far away they still are.