it's just flat number up
it would be better if it gave new behaviors to enemy stuff
ex. on hardest, enemy non-pierce gets pierce, piercing gets splash
so cannons would do extra splash, missiles would release a penetrator, lasers penetrate a bit, etc
this is basically the same thing as more damage but in a less boring way and that adds new threat
maybe something with splash or pen resist bonuses for armor instead of flat hp up, but that's harder to think of