So Level 2 is really neat. I have a strong passion for what the theme of the dungeon is (it's related to what my major in college would've been), and it's really well executed.
Really glad I randomly picked up this quest- I had no idea this was even being worked on, just saw it in the database and thought, "Eh, why not."
As for me... It's pretty clear that it's meant to be a hard quest. While I do think there is such a thing as bad design, a game being difficult is a whole different ball game. I still agree more with Shane and TS, particularly in that Level 1 did have some rooms that I found to be more annoying than challenging, relying on what felt more like dumb luck than skill.
Another thing with the whole "Zelda games are too easy" is, well, I'd rather it be that way than them all start being too hard. For veterans of the series since the original games, we're not going to get a Zelda game that meets the bar for us unless it's too challenging for anyone else to play. I can still have fun while playing easy games- Wind Waker is a relatively easy title, but it's one of my favorite games of all time. Mainly because difficulty isn't the sole thing that determines how good an experience you have with a game. Wind Waker has my favorite visuals, favorite story and setting, and of the best soundtracks. Those things immerse me more into a world than something like, "This enemy can kill me in 2 hits when I have 10 hearts."
Also, don't hold your breath yet- A Link Between Worlds comes out in a week and well, it's ALttP's successor supposedly. Aonuma has talked up about how the series has been easy lately and he wants to get away from that.