If you actually follow the link and READ it you will notice it was done based on a survey on Irrational's site to see how their fans played games and what they wanted. 1999 Mode is a reaction to them actually listening to their fans.
A lot of games remembered fondly from the 90s were pretty hard. Fallout 1 and 2, Syndicate, Deus Ex 1, System Shock 1 and 2, Baldur's Gate 1 and 2, and so on. Games that presented deep gameplay and a good challenge (something developers rarely get correct) have lived on. Obviously there are exceptions, but it is true that a lot of games have been simplified or "streamlined" for mass audiences. I mean do you honestly believe that the 90s Bioware would ever make a game like Mass Effect? If they had they would have made it a real shooter/RPG instead of RPG-lite. A lot of sacrifices are made due to the "mass audience". Hell look at the difference between Dragon Age: Origins and it's sequel. Same with the huge gap in depth and challenge between System Shock 2 and it's "spiritual successor". Games that were easy in the past are still easy, but games that presented a good challenge in the past are also much easier.
Now how about a 1995 mode, where you can rapid-fire rockets, run at 200mph, and there's no mouse-look?
All games need to do this. ALL.
honestly, it does sound like it would be fun to try for replaying the game, but I wouldn't want to play the game for the first time in this mode

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