The new "Ouch!" difficulty essentially combines the new Hard mode's Defense with vanilla Super's Attack, so saying that both are increased by 25% over Normal is correct.
Now, if you're suggesting that another 25% should be applied on top of that, well... I don't think so
In fact, I've been playing through the game as I was worried the boosted Defense might be too much, and while I've certainly encountered some tough nuts to crack, it's been manageable so I'd say the difficulty feels about right as it is.
That said, I'd love if you let me know about your experience with the patch, so I'm attaching a save state in case you'd be interested in giving it a quick look. That one has proved to be one of the toughest battles so far.