I bought Balrum and star playing.

I could not help but notice the rules system underlaing the game.
You start with ~800 hit points, but 1 hit from the first critter you encounter can deal 400 hp.

To me this is, to say the lease, horrible.
The system get overly convoluted with this amount of high number, no more realistic (we are still talking of hit points...).

Also, most of these systems suffer from the AD&D Mage vs Cat bug.

Ok that a fresh character is supposed to be weak, but you are always SO weak that I can't explain how you manage to survive to 20 years age.
30 meters from your hut lurks the most deadliest of spiders/inspects/wolf/name it, that will kill you in 2, maximum 3 hits.

I really miss some properly done RPG.

I hate that lease, the rates are usually horrible.

Do the hit points increase when you level up or do the enemies deal less damage?

Hehe, try some RPGs where you have hit points and experience points in the order of magnitude of millions just in the first several hours of playing. :)

I didn't play so long ... but I guess so.
Every level you get 2 learning points that you can spend on vitality, that will increase hit points No thanks ;)
I use my own RPG system, for tabletop play, and I'm done with hit points.

How do you determine when a participant in combat has been defeated, then?

I had very few problems with enemies in Balrum so far.
I'm playing in default difficulty, what about you?
I have played ˜20 hours.
Maybe it's because I got used to RPGs where the protagonist is very weak at the beginning (Gothic games, I'm pointing at you :p).
One tip, you can weak your enemy by clicking at Max (your dog) and clicking at the enemy.
Your dog will attack your target.
Eventually it will die, but you can revive Max with Phoenix egg and Phoenix ring.

Wounds severity.
From scratch to killing wound.
Works really fast, realistic and locational.
You can find something similar in Harnmaster
But is better to think of a games system with 800 hit points to start.

For now I ve stop played balrum. I got bothered if I have to rely on undying dogs and similar rubbish.
For a game that want to be realistic, this is way too stupid and pure mechanical.

This make me think how poor game design is for these RPGs

Seems like you played a few minutes and gave up. lol
You have no idea what you're talking about, that game has magic spells, the dev doesn't care if it's unrealistic.
Your companion can die, and if for whatever reason you want to play alone, you can. The game doesn't force you to keep the dog.
But you're right the game is not for you.
Not all games can cater to casual audience.

It's not a job, where I'm force to go on.
If I feel the game poorly thought and executed after a couple of hours, that's wasted money and time.

Don't care what devs "wanted" to achieve.
Not was a discussion about Balurm, but poorly designed game system.

Well, the game is clearly inspired by the Gothic games. Same dumb skill system, same dumb overpowered monsters in the beginning.
But it`s nice to watch some let`s plays on youtube. :-D

That is a jap style thing.

If you ever played asian influenced games you will see that EXTREMELY often...
Try final fantasy.

I played several FF.
While I was compelled to finish FF7, due to the novelty of the story, evocation ecc., the game system was appalling.
Well, I stopped at XII, and the game system has been appalling the same (perhaps just a bit less)
.

Balrum isn't very forgiving. If you can bring yourself to do it, start a new game and play as a warrior. Mage is a little tough until you understand how the game plays. It was even harder back on initial release. Also, you should know that there are skill books that will teach you many skills, and let you save your LP. Much like a traditional Roguelike, Balrum expects you to learn by playing, and learn by dying.

Roguelikes aren't for everyone.

EDIT: I should mention that if you're looking for a recently-released RPG that has good mechanics which keep a challenge going but never force you to hit a wall, look at UnderRail. I had a lot of fun with that; it reminded me quite a lot of the original Fallouts, or a single-PC (no followers) Arcanum.

I play regularly rougelikes, and I like them a lot, spending time on them.

But nethack, to name one, has a better game system, imho, then balrum.