Big time. They were also really well designed to allow progression if you came back and started again. They really knew how to design them to extract maximum cash.
There was a very popular game in our local arcade called "Toki". I once made it to the last level on one credit (unfortunately didn't complete it). The entire arcade gathered around to cheer me on.
Another time myself and a good friend finished "Time Crisis" on a single credit in two player mode on a machine that was in our college. Again, massive crowd. People really got joy from watching. It was great. :)
Don't you have to beat it a second time with some dogshit weapon too? And if you lose the weapon or die it's over because you can't get it back or something. Or am I mixing that up with super ghouls n ghosts?
I think you're right. I've played the arcade version too, and it's truly brutal, but most of my attempts have been on my NES. I don't know how similar the port is.
The arcade version was brutally difficult. Brutally! They took that difficulty to some of the 8 bit ports of it (friend of mine had it on an Amstrad CPC 464) so I never really got much fun out of that game unfortunately.
It's funny, I generally hate hard games, but I'm very fond of Ghosts 'n Goblins (both the arcade and NES versions) and Super Ghouls 'n Ghosts due to playing them so much in my childhood.