J Lo: Yup. This has to be the first game where seeing goblins actually gets me nervous.
Same here, but a fight can be a lot easier with a little pre-planning. Though I usually like to avoid combat when possible, I decided to go murderhobo on the blighted village because the goblins are a bunch of malicious jerks and there is satisfaction in seeing such vile creatures brought down. A little pre-planning and careful positioning made the blighted village easy.
Here are a few suggestions for those who aren't used to this sort of game and are struggling.
If you are struggling, play on easy mode. Combat will be more forgiving, and it will be easier to learn. If you get the hang of it, you can always increase the difficulty later if you want a challenge.
Approach unfamiliar areas carefully. If you have all your party members crouch down, you can see the sight range of the enemies. Sometimes, the game has perception checks upon approaching a dangerous area. Even if everyone fails the check, this still tells you that something might be wrong - there could be enemies or traps nearby. Take it slowly, ungroup your party and send the sneakiest character ahead to scout (a rogue or a bard is great for this). Turn based mode can be helpful here. Look for ways to get to favorable positions, and take note of any battlefield hazards, such as explosive barrels or heavy things suspended from ropes, that you might use to your advantage. If enemies are patrolling around, get an idea of the path they are taking, and note positions where the most dangerous enemies might be most vulnerable.
Plan out an ambush and get everyone into position. Wait for enemies to get into vulnerable positions if applicable. Go into turn based mode if you haven't already. Attack. The enemies will be surprised, which gives you an advantage. If you still have characters in stealth mode and they haven't joined the battle yet, switch to them before your turn ends, and have them move to a better position if necessary and attack to join the battle. (This can be a little confusing and takes practice.)
To the extent possible, concentrate attacks on one enemy - this removes enemies from the fight more quickly than spreading attacks around. Sometimes, it makes sense to take out a tough one first, while in other situations, it makes sense to clear out some of the weaker ones before converging on the one that is a damage sponge. If a fight is tough, fight dirty. Use exploding barrels - remember that you can pick them up, and you can bring them with you to a fight, though they are heavy, so it doesn't take many to encumber a character. Have your strongest character throw them, or sneakily set them up before the fight. Just don't stand too close, and stay away from any explosive hazards on the battlefield in case the enemy detonates them. Throw bombs into a crowd of enemies. (I've heard that you can put a bunch of combustibles into a pouch, throw it, and fireball it, for massive damage. I haven't tried this yet, as I want to save these resources for the toughest situations.) Shove enemies off roofs, bridges, or cliffs - they can take significant fall damage. If a big, mean spider is crawling on a web suspended far above the ground, fireball the web, and the spider will fall. Be creative - the possibilities are endless.
This is a very different concept from action combat, and people who are accustomed to action games might find this style of game confusing and disconcerting, just as I feel disoriented in challenging, fast-paced action games.