Difficulty settings should only be in a game if the developer moulds different gameplay aspects around it. Look at 1999 mode in Bioshock Infinite. All they did was make all of the enemies bullet sponges, make Booker extremely sensitive to damage, and add a needless penalty for death. There's no challenge there, just an exercise in frustration.
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Making enemies and bosses just simply tougher is something that annoys me as well. I don't mind if an enemy class or boss is tough, but developers need provide weaknesses to exploit or other ways the player can counter the extra armor/health.
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I agree. If they can't do that then don't bother adding it into the game.