Some people will self limit themselves to not using non bg1 items,
that's up to you.
If you play Tutu you will have kits available like inquisitor, cavilier
instead of just plain paladin, etc. you don't pick the kits it will be
just like playing in bg1 where kits weren't available, although the
inquisitors single disple or trusight per day don't seem too unbalancing.
You are still starting out at level 1 so you may only have 4-10 HP to
start with, and are very easy ti kill regardless of class.
There is a mod 'sword coast strategems' (SCS) (
www.gibberlings3.net)
which will improve the AI of enemies, it doesn't give them abilities
that they didn't already have,(ie. cheating) it just makes them use it
more intelligently.
The bg2 engine will allow a higher XP cap, so you could exceed the 161K
cap, but that will probably only account for about 1 extra level anyway.
You could add some other mods, grey clan episode 1, (blackwyrmlair.net)
adds an entire quest with several difficult battles,(you may need to
cheese your way through them) they will also add a bunch ofXP to further
raise the total XP you get, although not sure if you will gain another
level in the end, by the time you start getting to the 160+K XP levels
you have a pretty good jump to the next level.