In general, video games have changed to accomodate the new gamers and "casuals". Lives rarely matter anymore, since most modern games go to a lot of trouble to ensure that you die less.
But there are exceptions. Tales of Graces F may have an okay storyline, but the gameplay is no slacker. The bosses WILL wipe you across the floor if you're not careful. (Unless you're a "piggybacker", then the bosses are toast most of the time.) The difficulty levels themselves are actually difficult too.
You'll also find difficulty with some independent games too.
but in most of the games that i played, lives don't really matter.