Hard definitely. You have to keep in mind that you have to be careful treading the line between Nintendo Hard and Fake Difficulty. I'll give me two cents on each item:
No fairy fountains
I could kind of live with this in a quest intended to be Nintendo Hard.
Enemies don't drop life or magic
I'm kind of iffy about this one. It makes things tedious if you have magic intensive puzzle you botch and now you have to run all the way out of the dungeon just to try again. That and for general fighting, it will just make players want to AVOID combat at all costs, and at least for me, I don't see any fun in running away from everything. If you just have shutters in every room, then it becomes tedious because would YOU want to run a gauntlet 10 times just because you keep dying? Sure if you're going for a Liberation of Hyrule or Armageddon Quest style quest, go for it. Otherwise, it will probably turn many off.
Enemies drop less rupees
As Moosh stated, people don't like to grind. I'm one of the few that don't mind it as much, but combined with the above, it doesn't add to the challenge. It just makes everything tedious and annoying. People aren't going to have the patience to spend 3x longer killing monsters for Rupees. That and several deaths that result from grinding. I wouldn't want to spend an hour grinding up 50 Rupees, especially when I have to play ridiculously conservative. I normally play defensively anyway, but where's the fun in drawing out fights for 3 minutes when you should be able to do them in 30 seconds and can't because of how fast you get dropped?
No clocks
I actually support this one. Clocks are often just get out of jail free cards that turn a quest into a luck-based mission more than based on player skill. I really don't like infinite clocks. Even temporary ones are a bit iffy. I personally wouldn't have permanent clocks just because of again, the element of luck.
Link only starts with 3/4 of his life, except at the beginning. Heart containers and pieces refill life.
A word of caution; when Link only has 3 hearts, he continues with a mere 2 hearts. To be honest, I noticed many people despise quests that don't continue you with full health, and I personally have mixed feelings.
Pros of 3 Heart / Partial Life Continues:
-Prevents F6 abuse, so people can't just F6 as a means of free healing
-Makes the game feel more like the console versions
-You actually have to fight like you have some sense because of the first point
Cons of 3 Heart / Partial Life Continues:
-Widely disliked, can add an element of fake difficulty
-Having to take the quest at a slower pace may turn people away
-Not everyone is going to have the patience to spend a lot of time restocking just for another attempt
I can see where you're going with your quest idea, but I have to caution you to avoid that line between fair difficulty that is genuinely hard and something where every death is an unfair profanity filled ragequit marathon. I mean there are other ways to make things difficult without making people want to strangle the quest's author. I'm not saying anything like don't make this quest, but I just wanted to make some points. I mean people generally don't like being forced into cheating (in this quest's case, flagrant save scumming) or relying on cheap tricks just to make it to the next screen.
Edited by RedmageAdam, 16 February 2014 - 08:01 PM.