That is just wrong. it has been researched that challenge and difficulty is
one of the four keys as to why people play games (Games, Why We Play. "Four Keys to More Emotion Without Story." (2004).
link
Then added to that, there are plenty of games that are immensely popular because of their difficulty:
- Elden ring: I mean coming from a series that is notoriously known for its punishing difficulty, and to this date has 16.6 million sales. And basically became mainstream.
- Dead cells
- Binding of Isac
- Kenshi
- Hades
- Hollow Knight
- Returnal
- Nioh 1 and 2
all highly rated and popular, and almost all of them have quite the awards under their belt.
Then added tot that, roguelikes and roguelites have become extremely popular in the recent years. And those game rely on players dying. So making the assumption that "no one wants a harder game" and "no one plays to lose" is just flat out wrong.
Regarding, the on foot stuff. its difficult because the wrong reasons. the difficulty relies on damage multipliers and health inflation and if difficulty relies solely on that it turns into a numbers go up game, thats why it suddenly becomes no problem with engineered suits.
Nobody is asking to make every system a murder zone where you are jumped by over engineered enemies. Just for the advertised cutthroat galaxy. Hell most if not all suggest difficulty being scaled based on security levels, which would mean that high security systems would be safer. While low and anarchy would be more dangerous.