Wow what a post, quick afternoon scan and I see this. Now I'm sitting here contemplating every game I've ever played and what difficulty I chose.
This topic really makes you think about it, because you are completely right with describing the process. We people always want the easiest road, but also that work that is required at higher difficulty makes us desire the end reward so much more.
Giving players the option of difficulty is in my opinion, one of the most overlooked sections in a game.
Great post!
RE: Difficulty and its vital reason for existence [ESP/ENG]