You're right. But that's not what I said. My statement was non challenging gameplay always leads to a worse game. There is a difference.
A game can be really really hard and terrible. A game cannot be really really easy and great. Unless you're talking about arcade time sink games or something, but even then there is usually sufficient challenge to make you feel like you are achieving something worthwhile. Of course you can probably find examples to the contrary, i.e. Arcanum is a great game but it's ridiculously easy.... that won't really work though because it would have been even better if there was proper difficult encounters. Morrowind is insanely easy and unsurprisingly the best part of the game is when your character struggles to survive during his hikes between cities, not when when you can one shot everything. Deus Ex is better if you don't take the invisibility cloak mod because that makes large portions of the game meaningless.
A challenge gets you thinking, which may frustrate, anger or make you more determined. Once you finally beat the problem, your body releases dopamine, you feel better about everything. The entire process incorporates your emotions into what you are doing, thus making it more memorable in the future and more interesting in the moment. Part of the problem with a lot games today is that developers cater to people like you who may prefer less of challenge. Ok whatever. Problem is, after that all they do to make the game more challenging on higher difficulty settings is increase HP. That's artificial bullshit that leads to a situation you described a technically challenging but fundamentally bad game.