I'm an avid fan of VH/VH myself.

For the campaign difficulty, I've gotten used to managing diplomacy even when the AI is prone to hate you. Money helps wonders in this regard. I'm currently deep into a Getai campaign where I have 6 AI neighbours, and yet I'm only at war with one of them. Small one-shot tributes every turn have kept the other 5 distracted with their own problems. I've even learnt how to gain a peace on VH. If you're losing, become a protectorate. If you're winning, lots of money can usually buy you a peace - but you have to be sure that the enemy's troops have been pushed out of your territory. Otherwise they'll just accept the cash and attack you again on your turn. Also works best if they have another war to distract them. So all in all, I believe VH campaign difficulty is perfectly manageable.

As for the battles, I too got cocky some time ago, and haven't regretted the switch since. I've beaten armies of phalanxes with little more than hoplitai haploi and some akontistai. Yes, the AI's stat bonuses can be painful, but morale remains unchanged, and the fact that I'm smarter than the AI also remains unchanged. Generally speaking, you can still outmaneuver the AI. Futhermore, I've never had my elites hacked up by any levies... Their morale always breaks long before my elites. I greatly appreciate the fact that I no longer fight any "easy" battles. Even bridge battles are no longer a sure thing.

It's not the difficulty I would recommend for someone new to EB, but once you get used to EB's combat and diplomacy, switching to it can be quite enjoyable!