Generally covering a diffuse map into a normal map isn't going to give you good results. By and large the best that can be done is it treats the diffuse map as a height map... so anything that's bright is raised up and anything that's dark is sunken down. If you look at many diffuse textures in that way, you should be able…
Ok I'm really confused, I recently found that you can convert a diffuse map into greyscale and then convert that into a normal map. This seems too easy, but it does seem to work most of the time. Is this what people do in the industry or should you always bake from a higher poly?
Baking is irreplaceable if you're doing normalmap-based bevels and fillets (in order to make a border edge look smooth when the existing geometry wouldn't allow it). You will never guess the tangent right if you try to imitate that with a handpainted map. On the other hand, adding surface detail (like wood grain, fabric…