Maxing stances doesn't help outside of avoiding getting hit (Auto parry on spear guys is pretty useful). It just keeps you on an even playing field. Now that you're in Act II you'll start to notice it. Shield and Spears, and eventually sword guys will start staggering you before you can fully break their guard to land strikes, by Act III they'll parry too. Even with a broken guard they'll recover faster. I was heavy on the smoke bombs like you at your point, but after a while I did a lot of Bow and Blowguns to thin out crowds. Kunai are always handy as well as you've noted. The blowgun is the single best weapon in the game. In act 2 there is a middle grassland and an area in the northwest to farm the darts, by Act III they're everywhere. The hallucination darts are what I was talking bout earlier. Pop a spear guy and he'll single handedly take out 3-4 other guys.
I recorded this after a few runs of this happening.
The real ease comes from the mythic abilities being able to be performed in duels. Once you get Heavenly Strike and Dance of Wrath, you can basically just go easy mode and open up with a lot of damage, pocket a few resolve in case you need to heal and when they're low enough pop them again and finish it. Things become even easier when you get Way of the Flame and the final stance of the game half way through Act II. If you go into a showdown fully loaded, its over in seconds... mechanics need not apply. Way of the Flame can't be blocked like the others and it uses ammo instead of resolve. So you can just mercilessly brutalize the opponent. I'd pop one, get regular strikes in, and pop the next when their guard returned. It's extremely busted tbh, but it does make you feel super powerful. It doesn't bother me like it will probably some people that like challenge.
Edit: Yeah I felt the same way as you did and picked that ending. You're feelings will be even more validated after you take the second castle.