Yes, I played on hard difficulty. No, they are easily defeated if the game didn't freeze.
There were relatively few other creatures there, so they could be ignored. The ranged units only attack liches, which isn't countered by Drain Life. And for these Lords, there's: Time Stop (it skips 3 turns, allowing you to attack freely with everyone). Then, spiderlings can stop them for one turn. After that, you can drive them away with Mind Control and then shoot them calmly. Moreover, this Inferno Castle was without a hero.
And in castles with heroes, I only encountered 2,500 succubi.
Hard difficulty isn't that terrible; you just need to get used to it, and it sometimes forces you to think, but since I was playing as a mage, Drain Life and Restoration did all the healing work. It's a pity I only maxed out the mage, as the skills are mediocre. I'll try playing as a mage/blood mage and a warrior (since you can choose the character class in the first mission).
I remember that castle with 2,500 succubi. I looked at the danger level – it was low – and rushed in, without even checking how many there were (it's a habit). I spent 2 or 3 turns subduing their demonesses. Fortunately, I started capturing Inferno Castles after I had taken control of the entire surface (teleportation spells + Caspar, and all the castles were easily held).
But the most interesting part was, of course, with the Lords (there were 200+ of them). I had to use vampires as tanks, and I used all kinds of resurrection spells on them: Restoration, Drain Life, Necromancy + archliches and ghosts. In general, it turned out to be quite fun, and I didn't even look at who I was attacking.
After that, Uriel didn't seem that difficult. If he had some novices in his guard, that would have been great