Hard mode is the perfect FE experience imho. Even without grinding you should be able to use any character you recruit if you like them. Though some will take a decent amount of hand holding.
Pair up is mostly not necessary on hard and honestly sometimes you're better off without it because it gives you more actions per turn.
You absolutely need it on lunatic. The enemy stats will always be too high for single units to reliably handle unless you grind. Even Frederick isn't perfectly reliable in the early game if he's unpaired.