Since there are no real benefits for picking hard difficulties other than fun (you don’t get better loot), you are free to play the game how you most enjoy. If you like being overpowered… you can play normal mode. If you like a serious challenge, play elite (which is much harder than very hard in TL 1). If even Elite is not enough for you, you will be able to easily download a difficulty mod and challenge yourself further.
The loot and drop rates don't change, only monster health and damage change.
And there is always the option to create your own difficulties with mods, to suite your specific desires.
Alter the file “settings.txt” found in your Torchlight 2 Save file.
The save file is found here: %userprofile%\My Documents\My Games\Runic Games\Torchlight 2\save (There's a subfolder in there which is just a bunch of numbers, and in that subfolder is your settings.txt file, along with all of your saved games)
Open the file with a text editor, then press Ctrl+F and search for Console :0. Change the parameter from Console :0 to Console :1 to activate the Developer Console, enabling use of cheat console commands in Torchlight 2.
Now that console is activated, you can open the Console window while in-game by pressing Insert.
NOTE : Using the DEV CONSOLE risks having your account marked as suspicious to unmodified players of Torchlight 2 online. Use console commands at your own risk.
Best Answer
You cannot do that in the game by default. You will need a camera mod for it.