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I'll argue people moved because of aesthetics, art direction and narrative. While yeah, I agree with you in how Nintendo's difficulty is an slugfelt hill to the "hardest level" their difficulty is more built around level design, like how From Software does its games. This makes hard to make difficult settings. And I think there are extremes in both ends, I felt Dark Souls more punishing than Bloodborne, while the latter is kinda like DKC. Hitting that sweet spot of being challenged but not feeling the game is either cheap or strict is hard to do. Also adding that not only Nintendo makes easy games and other developers still make experiences built to make a sandwich of a bit of gameplay then cinematic and rinse and repeat. (Arkham Knight still is an example of this).
I think what I could say, is try making more games like Donkey Kong Country. Also giving a Direct for more niche games like Xenoblade could hopefully make it more understandable to the average Joe. Despite seeing footage I don't get how the combat works.