You might be right.
Keep in mind that a lot of older games focused on playing the whole game in one sitting (Star Fox and Street Fighter are good examples). One of the ways to increase replay value in that setting was to offer more difficulty modes. Shooters and action games were notorious for this.
Difficulty modes are still present (very much so in PC games) in the current gen, but with the focus on a much longer gaming experience (more hours of play) you may not see them quite as much as you remember.







