edit : moved forums as suggested
2 things:
1) Arneson, the enemy hero in the second battle of this quest has virtually no equipment and no attack value. He has his army buffing hero skills that give a small minor passive buff to the army but that's it. So we was a pushover.
2)The dragon eye gem itself. I don't know if this is required for any other quest but the thing has no value. It's not equipped for anything and has a gold value of 0.
On another point: Critcial damage is completely out of hand. the skill seems to imply that you will do an extra 50% damage but its doing so much more than that. As many people have already said.
I shold never be seeeing a critical hit for 900+ damage off of an attack that does 70 or so. I would expect it to do maybe double damage for 140. 200 damage might be reasonable but that 900 damage killed my tanky unit with 500 hit points in one hit and that has been the highest hp unit i have seen in my game against the ai's in that scenario - boss monsters don't get - pyre of man that sort of thing.