The game is not run based, but there is an expectation of losing easily.
You cannot "win", since it's just a city builder in the end, but you don't necessarily get any progress after a run. I've been playing it for some time, and most things are locked away because I'm not playing "hardcore" enough to unlock them. Which in turn makes the game harder, which makes me not get the achievements. It's a vicious circle.
And I would gladly adjust the difficulty (which can be changed precisely) to make some parts that bother me a bit less tiresome, but even if I increase the difficulty of other parts of the game to compensate, the fact that I dared make anything easier at all is enough to prevent unlocking anything.
Some games are like what you described, made to make you progress very slowly, and that's okay. But what I've observed is not generally a slow progress rate, but an actual roadblock that tells you that you cannot continue playing/progressing until you invest a significant amount of effort in the game.
And for the argument of ruining the gameplay loop... So what? If I want to play Monopoly with my homemade rules, does it matter if the gameplay loop is broken, as long as I'm having fun with it? No, because the point is to have fun. So why is it different with games, where there is the holy way to play properly, and every other way is invalid? If breaking the planned gameplay loop doesn't prevent me from having fun, why is it a problem? And if it does prevent it, then I would just not do it. It doesn't change anything for anyone else. If someone has fun playing dark souls with a cheat that makes them invincible, it ruins the intention of the game, but they are having fun, which is the goal of most games.
That's my point: people and games, by default, consider that having fun is less important than playing "the right way", which is already favouring hardcore players over others.