It gets worse. They are noobing up the whole series by letting people not have perma death.
They're broadening the possible audience. It doesn't hurt you in any way.
If you look at it from the "hardest possible way to play it", Fire Emblem has just gotten harder and harder. FE10's hard mode was harder than anything before it, and Shadow Dragon's Hard ***** was equally hard, if not harder.
The GBA Fire Emblems were "noobing up the whole series" because they were all easier than the title before them to everyone. Adding another difficulty doesn't hurt anyone, it just improves it for some people. What they're doing with with FE12 is far better than what they did with FE6-FE8.