Difficulty rating descriptions

Playing around with the intro screen last night, I noticed that:

- five AIs at fool (that is one level below normal, correct?) gave me an overall difficulty of "challenging" or such.

- five AIs at normal ave me a rating of "tolerable".

I would think tolerable is easier than challenging. While I can understand difficulty level going up as you make good/neutral races stupider, I would still think the overall difficulty should increase as you increase intelligence across the board.

Am I misreading the difficulty level?
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