I love Zelda II, although I know I'm in the minority. It's fast, fluid, really challenging, but rarely cheap.
I don't even really mind being sent back or losing experience with each game over: it strikes me as a fair penalty for dying, but one that's not too harsh. Most places, even far-flung ones, can be re-reached fairly quickly, thanks to the game's fairly tight design, and experience only exists in this game to reward the player's persistence, not to make the game beatable: this is strictly an action game, with the RPG elements being tacked on to make the game easier for players who prefer things to be (a little) less challenging.
I agree though that the start button would be better if it was mapped to the X Button.