betterHand function returns a Hand, so it is not clear what to do if hands are equal.

OMG. indices is a very brutal way to get N sequential integers. Consider using

let n = length is
    indices = [0..n]

Actually, tests for equility need to be added:

Normal 'x' == Normal 'x'
Normal 'x' /= Any
...

This will detect such cheaters

"(a|b)*"  -> ZeroOrMore (Str [ Or (Normal 'a') (Normal 'b') ] )

at the end of second paragraph examples should be

"(a|b)*"  -> ZeroOrMore (Or (Normal 'a') (Normal 'b') )