The problem is not the game balance, the problem is because enemies don't scale up as you progress with Geralt so that enemies stay challenging.
So more you level up with Geralt, so higher should increase the Base Level of all Enemies that are weaker than you after you surpass their initial levels.
Example:
We mee early on in the game Level 5 Wolves. Once we reach self Lvl 5, the Game should scale up the Wolf Level from 5 to 10 so that Wolves, especialy when they come in large packs of like 5+ of them stay really challenging and a serious threat for you. The moment where enemies become one hit kilsl due to your weapons becoming too strong and your skilsl becomign too strogn for the enemies, that don't scale up, thats the moment, where game balance fails and where CDPR should have learned from Guild Wars 2's scaling system to keep monsters challenging enough, even while you progress in the game, so that you simply can't completely outlevel them to the point, where they basically would have to run away from you, if their appreciate their lives due to you beign able to one hit kill foes with simple fast attacks.
Equipment and Enemies need to scale up better. So more we progress with Geralt, Loot that we find in chests should always be level appropiate, never lower that what level we are currently, and also not never much higher that we currently are. Loot Chests should reset after a certain time, so that people just don't loot stuf first, when they have reached high levels.
Like after a month of game time (30 days) chests should reset.. This way you can play the game just normally, loot whenever you find somethign and maybe return later to a place when you have become stronger and enough time has passed, so that you can loot a chest again and find maybe the next time then better scaled up equipment for your current level ( a bit randomized, so that peopel just don't abuse that system to get too easily good enquipment/gold from selling respawning loot)
Either this, or CDPR should improve the craftign system, to add the feature of REFINING equipment, so that by refinign our equipment, we can increase the quality of equipment and its max required level to make the refined item more powerful.
Refinign equipment would become so more powerful the weapon becomes costful and owudl require of Geralt also to bring to the Weapon/Armorsiomths certain items.
also the item range that can be refined by the npc should be defined by the job experience of the NPC.
Beginners should be able to refine for you items from Level 2 to Level 20
Adepts should be able ti refine for you Items from Level 21 to Level 40
Masters should be able to refine for you items of Level 41 and above to whatever is Max...
When i remeber right, a dev of CDPR said that TW3 has no max level, that you can basically level unendlessly in the game to learn everything, if you want.. that there is no level cap.
A refinement System would make also sense, because it would give the game a good money sink, because once you have learned basicalyl all schematics that you can learn/need and have good enoiugh equipment to play through the game, there is basicalyl no reason anymore to spend any money in the game for something.
Buying food? Waste of money, you find toons of food everywhere in the game or you can simply kill animals for food. just missign that we can pull out a fishign rod lol...
Buying alcohol, see food, you fidn plenty of it everywhere that you basically never need to buy it and even if you do, it currently has no meaning in the game, as it has not the use for you, like it had in TW1
a little money sink that stays permanently is only repaiing your equipment so far