This is why I enjoy games with different difficulties, so you can challenge yourself if you so desire.
While some Nintendo games have lost that ridiculous difficulty setting, most of the games I play (the Nintendo ones) retain a certain degree of it.
Mario Galaxy gets pretty challenging at times, and Metroid Prime (all three) get pretty damn difficult at times.
Most people forget that half of the challenge in old Nintendo games is the whole "we're not going to explain anything" bit.
Ever since I downloaded (for free) Metroid, the first Metroid game ever, I've been struggling to beat it. Not because the enemies are challenging, not because the puzzles are confusing, but because the game doesn't explain anything to you, doesn't help you, and makes things really frustratingly hard.
You can't aim below your waist, you start with 30hp every time you die/start the game, enemies respawn when you move off screen of where they were last, enemies exploit your targeting capabilities and rape your shit, the map is never shown to you, etc.
I don't want to hear the old "new games give you the baby treatment and give you everything" argument, because in this situation, its absolute bullshit.
Its difficult to play through Metroid because I love all Metroid so much, Samus is epic fucking win... but goddamn this game is frustratingly hard in the most frustrating ways =/
Edit: Guess I should give my answers to your questions, lol.
Would I play more Nintendo games if they brought back "Nintendo hard" ? I play games that are fun, not because they are challenging. The challenge just keeps me playing longer. Ideally, you could increase the difficulty yourself.