As you read. Shigeru Miyamoto told via ONM that modern action games are too hard, and entertain comes first.

“A lot of the so-called ‘action games’ are not made that way. All the time, players are forced to do their utmost. If they are challenged to the limit, is it really fun for them?” – Shigeru Miyamoto

“It’s about enjoying something. I used to draw cartoons. I’d just show them to some of my friends, expecting that they were going to appreciate them, that they were going to enjoy reading them. And I haven’t changed a bit about that. When I’m making video games today, I want people to be entertained. I am always thinking, How are people going to enjoy playing the games we are making today? And as long as I can enjoy something other people can enjoy it, too.”

http://www.officialnintendomagazine.co.uk/article.php?id=22134

Sometimes, games have challenges that are frustraiting, but at the same time you have that feeling that you're good at the game. What do you think? Is he right? Is he wrong? Is he crazy? or he need to stop talking?

"If they are challenged to the limit, is it really fun for them?" If I didn't know what this guy has created, I'd call him an idiot. Yes, in many players' opinion it is fun, if not for any other reason, then because passing a challenge feels rewarding.

Also, modern action games (as well as most other games) are actually too easy.

i play a game, and i'm stuck at this place for 4 hours, trying to beat this boss or puzzle or whatever. Once i beat it that satisfaction lasts 4-5 seconds and then its gone.

So stupid hard game are never fun.

Not sure what he's thinking of there.  

Games back in the NES days were infinitely harder than games today.   Back then we'd spend countless hours, trying again and again to finish a game that was really only minutes long until we did, which was fun regardless of how we did.   Now people whiz through God of War 3, or Halo or CoD (single player) in a few hours, and complain it's too short.   And that's because games are so easy now there's little replay value (outside of online multiplayer).

This is also a strange comment considering Nintendo just dropped DKCR, one of the more challenging games on the market.  

He's actually lost it...

Super Mario Bros. was fun because it was challenging; because you wouldn't usually finish it in one playthrough. It gave it replay value and you could find the interesting tricks about how to pass each obstacle rather than rushing through the game and never playing again.

If he doesn't understand why SMB was fun, no wonder he's reluctant to put effort into new 2D Marios.

When was the last time you played a 'stupid hard game'? Because I'm not sure I remember even playing one. True, I probably missed some of the hardest games there were but it also means there aren't too many of them. Besides, games can be hard without being too hard, and even then, that's what difficulty levels are for.

Oh wait, now I remember! I was stuck for years in the third last mission of Driver 2 I think. Literally years. I didn't count and sure didn't try every day but it must have been years.

I can see where he is coming from. I like a good challenge hell I miss the days of having to replay levels over and over but it depends on the game. It has to make me want to finish it to go on if its really actually hard. I remember playing Metroid on the NES. I had a lot of trouble with the game way back when, but the sense of wonder made me want to keep trying. I think that is one thing missing from a lot of big games anymore. Thier is a lack of wonderment of what youll see next in a level, or what will happen next, etc. Kirby Epics Yarn was a easy game, but Im still replaying it because I find something new everytime I do. It really has nothing to do with being easy or hard for me I guess.

the newest donkey kong and super mario are "modern action" games?  or is he saying that its fine for them to be hard because only modern action games cant be?

I might as well quote you than type an identical post.

On the contrary. I find games to easy. I just may be a person who enjoys harder games though.