Terror From the Deep is technically harder but UFO on anything above average difficulty is hard as fuck. The new game I started yesterday was on the second difficulty up from the bottom and after 4 months (Of a game that generally runs to three years for a winning game) I'm already having to either save every turn or pick my fights better. The main problem is that research takes that much longer and until you get laser rifles and some armour, your team are walking funerals.
When TFTD was made, it was based on an early version of UFO that was bugged to play every skill level as beginner, so they ramped the difficulty up based on how hard UFO's Impossible mode was, but with it actually playing as beginner. As such, playing with anything above easy skill in TFTD requires advanced knowledge of the game and a shit ton of luck.
It is an amazing game though and if Ikaruga can be considered an approachable game, then I reckon people could cope with UFO. The trick really is just not become too attached to your soldiers...
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Thought I might chip in on this considering I've been playing this a fair amount very recently and am actually pretty close to finishing it for my first time. I personally found it to be insanely hard until I was more familiar with the game mechanics. The psionics/molecular control mechanics in particular are really overpowered (both fighting against and with) in my opinion. Pretty awesome game though, I've only really begun to appreciate the strategic & tactical depth in my recent playing.
A few tips to add for beginners:
Jam it back in, in the dark.