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We've drifted far afield of the good ol' arcade days, where higher difficulty - quarter munchers - meant more income for game publishers. Nowadays (most) devs are concerned with players enjoying their time with a game so they'll be more inclined to buy their next game. And it's very hard to enjoy a game for long if you are perpetually stuck on stage 3 (see Battletoads).

All that said, difficult games exist, they just (usually) have baby settings for babies.