With increased hardware memory enabling to limitless saves, mainstream games are generally easier(and much longer) than they used to be, though the increased range of choose-able difficulties including permadeath can still give the option for a challenge. Also the existence of crazy difficult games like Hearts of Iron make up for the easy ones.

"How do you continue after you die?" ... "You mean I have to restart from the beginning? That's ridiculous!"

I wonder if they played Getting Over It. There's no death, but make one wrong move with your mouse and it can feel like going bankrupt and having to start from scratch again with only the skill and knowledge you've gained through failure.

It's like the culture itself is pushing people to all have this "main character syndrome" and everything is going to cater to you at all times.

Idk, I think gamers just like roleplaying with blank slates. As graphics and realism improves, games are increasingly less plain "games" by definition, and more "Second Lives". Escapism appeals especially to the types who are into trans culture. Who are already in the process of LARPing away from biological reality anyway. Since they identify so much with the virtual characters and their in-game progress and development, a death of that character is the last thing they want, so game devs may design their avatars to be durable/unkillable, or the environment to be a cakewalk.