After hearing about the Shadow Yukiko nerf, I decided to pick Hard. It's not even as hard as I remember Vanilla P4's Normal being, save for occasionally getting one-shot by exploding dice. That "restart on current floor" mechanic they added is a godsend, though.
I hear the only difference between Hard and Very Hard was that they took away that, and you had to re-load whenever you wiped. Is it actually any harder?