Yes but the reason why that logic doesn't work because wow has always been losing subs since they started going that route. Not to mention, MoP lost tons of subs. Many companies lost money because of that route. I don't care if people would cater to the 1% as long as their overall design philosophy isn't messed with. It is that reason why so many stopped loving wow. Sometimes, it is just best for the developer to go with their own route.
However, it always depended on the game. RIFT is a good lesson for us consumers to learn from, in that just by making a game harder, doesn't mean it will give the best results.
Kinda off-topic but I bet that is why the mods are waiting for the initial hype to dial down, as RIFT isn't the greatest example of what difficulty is.