the most basic answer is "Challange vs Reward" to u'r question OP, if its stupid hard for something super lame (Mount/title) then only those who have masocistic tendencies will grind it (or those who just want the challange) now if the reward was a buff or slight stat boost (like u beat coil t5 & get the achievement u get 5 more of those selectable bonus stats) or gear that actually lasts more than next patch then u might make a masocist outa ppl who normally arn't (& the clear runner sellers would probably increase as well... but I'd exspect it by now)
Now put said "Stupid Hard" challange in MSQ with a "u can't reach end game stuff without it" like Steps of Faith was then u get something thats bad for buisness, especially in a game that even the creators treat like a "Theampark MMO". Prime example is the uber-nerf they gave Steps when they realized the player bace as a whole ant that good... or wanted to be (yes ppl did beat it pre-nerf, I was 1, it was hard for a person who hadn't touched Coil back then)
my personal answer to the y/n question is: Yes but as long as the challange was hard enouf to teach u something that u could learn & better u'rself from & not insta-death, unrecoverable, party-wipefest of salty rage tears... that just is asking for internal conflict & unsubbing.