I believe Star Wolves 3 was originally an expansion pack for SW2 at least for the russian version, so I'm kinda guessing they set the difficulty to max on the assumption everyone had beat the original game and knew all the tricks to beat seemingly impossible encounters.
If I could mod the game I'd have made all the ships in the game have double or triple armour/shields so it becomes more tactical and less a crap shoot as to whether you can get your team through an encounter without losing their ships (even with a techno-mage/well perked systems guy going full on repair).
Speaking of which, any modders out there?