I don't play video games enough anymore to know whether this is widely acknowledged, but the growing popularity of NewGame+ modes strikes me as really clever design, when you embrace it in full. 

You get to build an accessible experience for most normal players, and sidestep the usual ego problem. i.e. a large amount of men will only pick the highest available difficulty, much like they will only pick the largest size condoms, so if you truly make maximum maximum, then it's unbalanced for the majority (of males anyway; no idea if the pattern repeats for women, that would be interesting to find out).

But as NG+ only starts after the first run is done, no such problem. The casual ego players are gone by then, satisfied with their "max" run1. The remainder is here for the gameplay loop, and (ideally) gets to enjoy an increasingly finetuned experience.

NewGame+ modes indeed offer a unique solution to balance gameplay for diverse players. They allow for a more tailored experience without the pressure of initial difficulty choices, enabling deeper engagement with the game mechanics.