It's the way you handle difficulty that matters. Most games when they are difficult are frustrating as well whereas Dark Souls does have the reputation of being difficult, but crucial has a very strong reputation for being fair and very well designed. Those two last points are the crucial point here and it's what allowed an "uber hard" game like Dark Souls to sell quite well.
Devs should focus more on a good rewarding experience and good enemy design versus just shoving such options in a game.
So I take it you want CDPR (and developers in general) to forgo the addition of difficulty settings in favor of well-designed enemies? Why? Why not have both? TW3's monsters don't seem to be badly designed at all, at least from the little we've seen in the demos. For example:
Werewolf: Skinny when you first meet it. When it only has 1/4 health remaining, it howls. This changes its appearance (massive muscle growth), summons a number (dependent on level) of wolves, and multiplies its health regeneration to OP levels. At this point, it's difficult to defeat it without a silver bomb so you'd better have one prepared.
Water Hag: Dives beneath the swamp to flank you. At a distance, it hurls projectiles at you that, if not dodged, will smear 90% of your screen with muck, making it near-impossible to see. While you're blinded, the Hag goes in for the attack (at least it did so in the demo).
Ekhida: Aerial creature, and doesn't give you a chance to hit it with your sword except when it swoops down to attack you. If you dive underwater to avoid it, it follows you beneath the surface and attacks you underwater.
Foglet (no gameplay footage, but described in bestiary): surrounds the area with fog. This thing is supposedly invisible save for a shimmer in the air, so you have to keep your eyes peeled. According to the bestiary, it "shines a light from its intestines through the fog to lure lost travelers towards it". Unless you can pinpoint its location, you'll be getting hit out of nowhere.
The point I'm trying to get at is the monsters in TW3 that we've seen so far generally seem to be well-designed. All four of them have various tactics that suit their environments and require different tactics of your own to counter. And these are just four of the
eighty monsters that are supposedly in the game. Given the fact that we have well-designed enemies, why should the developers then be stopped from adding difficulty levels? Is it because you believe that each difficulty level should then possess enemies with even more abilities and moves? If that's the case, I must object.
We have four difficulty levels. Easy, Normal, Hard, and Dark. Normal is supposed to be the optimal level of difficulty, at which the game is the most balanced between story and combat and at which the game is meant to be experienced. Why should the developers then lock out certain abilities and moves for the difficulty level they will undoubtedly have spent the most amount of time polishing? This makes no sense to me. Aside from the fact that it means each level of difficulty must be balanced individually, it also means you diminish the experience of the player who - ironically - wanted to play the game as it was meant to be played, all enemy abilities and moves included. Therefore the idea of locking these out for higher difficulty levels is counter-productive towards the overall state of your game.
Anyways, I'll admit that I fully support CDPR's current method of handling difficulty. Easy is for those who wish to breeze through combat and focus on the story - hence enemies cannot block, etc. Normal is the game as it was meant to be experienced, hence all enemies have all their available moves and abilities. Hard and Dark are for those who want more out of combat, hence enemies' "damage dealt" is greater, forcing the player to watch all the enemies on-screen more carefully and be more cautious in their attack and preparation strategy. As a whole, this hierarchy makes perfect sense to me, and I'm fine with CDPR keeping it.
Perhaps you have an alternative solution? If so, I'd genuinely love to hear it.