Apologies for anyone offended by the 'entitled'. I actually didn't intend at all for that to be likened to casual gamers. I was speaking more to the difficulty for difficulty's sake vs difficulty = rewarding more than anything.
Rather than the casual vs. hardcore axis I was speaking to the responses of gamers to MMOs. If you look at any MMO forum there are the entitled posters and the posters who want to achieve a competitive game without throwing away the challenge or balance. You can see this at many PnP games as well.
I actually think you can be a casual gamer and be competitive or hardcore and feel entitled. They are not mutually exclusive in any sort of stereotypical manner.
As for the integration of the game to support casual and hardcore gamers, I fully agree with Scott Betts that the success of PFO will somewhat lie in it's strategy in how it intends and is capable of catering to both.
In reality PFO will play the PnP role of DM/GM and have the responsibility of providing an entertaining experience for the players across varying customer segments, time availability, skill sets, and backgrounds. They cannot possibly cater to the Hello Kitty MMO crowd and the original EQ/UO pvp loot dead gear off players crowd with equal fanfare - but there is a healthy middle in between. Like Berik said - you can bring something to the table for a wide group of people. I know as my wife and I had children our time schedules and obligations changed our playing habits - the games that were able to be flexible and provide fun across the hardcore/casual axis are still in our arsenal.