The only difference between Normal and Hard is that mobs are slightly stronger and you need to eat food to make sure you keep your health up.  Most players, if they have been playing online are used to this setting.  Even new players may have been playing on Hard mode before they started online.  You cannot say that this will drive new players away.  With that said, for those who just like building, or want some sort of protection from the Wild, that is the reason this server has the Towny plugin.  To give a designated plot for people to build on with protection of that town...usually with Mobs turned off and pvp turned off. 

Directly from our own servers advertisement:
Rules:

"Welcome to SentinelCraft!

SentinelCraft is a bukkit server that started in May 2013. The server has very active and mature staff with years of experience and a dedicated player base. We have a well defined rule set to keep your time here friendly, enjoyable and fun! To ensure everyone reads and understands the rules we make that the first thing you must do when you join the server.

- No Griefing
- PVP is allowed
- No Cheating
- No Trespassing
- No Disrespect
- No Bug Exploitation"

If PvP was not meant to be part of this game, or attract players that enjoy some harmless PvPing then they would not have stated PvP is allowed.  In fact, PvPing does embrace a community like setting, my last server my buddies and I were in an epic battle with this other town...you know what that did, it urged us to play more, to organize attacks with other members of the servers who were also their enemies.  I can still remember their names...Lazyboy and Blob96 lol.  I hated them at first, but ended up teaming up with them down the road to fight other people. 

Anyways, the server also states it has active and mature staff, that does not mean we need to be babied and have the mode set on normal, and never lose items.  I believe losing items (not all, just a chance at losing random items in your inventory) is essential because XP or Money can be manipulated, i can just deposit all my money into the town bank, and never have xp by enchanting books and then go around killing people, killing people, and killing more people because what do I have to lose....nothing, but If i may lose stuff in my inventory, then I would think twice about fighting/pvping someone and possibly losing my inventory to them. 

"Changing from normal to hard will put some new players off the server as this server is unique for the freedom of the wild. I do agree that there is no survival worry about the server as you do not loose anything when you die." 

How can you project that if the server goes Hard mode, players will up and quit, that is a wild guess thrown out there.  In their advertisement, this server is SURVIVAL, when I found this server a month ago, or less...and it did not allow PvP, and it was not survival, I know for a fact my friends and I would not have joined, thus the server would not be receiving monthly donations from us.

http://www.minecraftforum.net/topic/1976671-new-bukkit-server-sentinelcraft/ Here is how I found this server in the first place, and what I am using as proof, that it should be survival based...meaning death, and loss of items...a lot of similarities to vanilla minecraft, and pvp is allowed and apart of the community.

I don't know if I am the only one, but back when I was playing a few servers a few versions ago I noticed mob spawn rates were much higher.  ANYWHERE there was light level of 6 or below, a mob would spawn.  I had to make sure I had my houses, bases, etc...very well lit, glowstone here or a torch on the wall in that corner because if I didn't then a mob would spawn and sometimes kill me.  SO far in this server, I have cleared vast areas of land, underground, above ground, made towers, trying to get monster to spawn naturally so I can go hunting with my pack of dogs...but man I get like 1 or 3 spawns tops. 

My next point, having the server difficulty harder, or higher spawn rates if they are turned down for some reason, creates a sense of immersion.  Immersing one into the game, where if you are building or digging around your base and there is low light, you either better have your torches being placed, or checking your back for spawns.  That gives a sense of excitability, not knowing a skele will spawn and shoot the hell out of you and kill you or not. 

I feel this request should be sincerely considered and reviewed.  This is not a game-breaking plug-in request or anything that would affect peoples play to a sever extent.  The peaceful players who are builders and possibly younger kids that just like to build, would not be affected if they take 1 second and put a stack of torches in their inventory, or learn to wait till daytime to go out gathering flowers, lily pads, wood, etc...however it would satisfy gamers that like to be adventurous, actually have to gear up to go out gathering if someone was serious about not dying. 

Also, I would like Fedgar to reconsider the safe death system, I actually hate being babied and not ever losing anything...the balance between risk/reward is absent in this game.  There is never a risk, and only reward.  "Hmmmm to try and place blocks down across lava to mine that gold ore...or pass it up, decides to mine gold ore, but then is shot by a skele and falls in lava!...but wait I dont ever lose my diamond armor, enchanted bows, swords, pics, shovels, or mined ores...so no biggie" I would rather fall in the lava and lose half my items or all of em, and be pissed but LEARN a lesson and try to become better. 

TLDR: No read the post, dont be a lazyass...

-Los 
(I prolly left some viewpoints out or ideas but ohwell...I will post again soon)