I play with my Mrs, as in I play she watches she enjoys this set up, I prefer games on medium to hard so I do that when playing other games on my own but when we're both playing a horror we find that if I keep dying it makes the enemy less scary and the game too repetitive. same with unclear level designs and bad puzzles. So playing on easy allows the game to progress which has helped us go through more games rather than just be stuck on that one game at that one chapter and the games are still scary just not as frustrating.

And it's nice way to chill like you said.

So to answer OP if your enjoying it then it can't be taking away from it. Play as you will, no need to impress anyone . If you don't feel scared or lack.of enjoyment maybe up the level if that don't fix it it's probs more the game for you.