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For what it's worth, I prefer Master.
Also, some races and 'classes' become unplayable at master. Stealth characters are overpowered because you can so easily avoid getting hit, while melee is borderline unviable. Also, only 3 or 4 of the races are really usable on master. The only one I can recall is orc, because their ability effectively lets you turn the difficulty back down to adept for 30 seconds. I believe the orcs are considered the most overpowered race in skyrim.
If you want to play what you want without having to think about its viability, but also want to, you know, actually have to avoid getting hit, then expert is the best.
But there is ONE issue with expert. When your level gets to be around 15, bandit chiefs will automatically do a kill move on you, even if you're at full health. You won't be able to do bandit camps again until you get around level 20, even though you can easily handle them when your level is 10 or lower.
But even then, expert has far less illogical nonsense than the higher difficulties do.
Of course, I play for immersion (as in roleplay), so if you want a challenge, well, turn it up as high as you can handle it. Though I wouldn't suggest jumping all the way up to master. If I was ever inclined to even attempt that, I would ease into it by gradually increasing the difficulty over a length of time.
I also mostly limit my crafting to one or zero skills, which helps. Eventually you still get OP, and then I might turn up the slider a bit to balance things back a bit.