Perhaps it's just my love of the English language, but I believe that translating Shakespeare into modern English would completely ruin it. When one reads Shakespeare, one is not just looking for a clever plot and interesting characters, but rather feeling and experiencing the flow of the words; the syntax as it were.
You have to remember that Shakespeare cleverly uses both verse and prose in his works and changing his diction would completely butcher the piece as a whole. However, I do understand that it is rather difficult to understand. In reality, I'm all for "No Fear Shakespeare" because it gives a translation beside the original work. If the works of Shakespeare were to be translated, I would accept this.
As for the question itself, I don't have an issue reading Shakespeare. Yes, it is a bit difficult, and sure, I may have to read some lines a few times over. As a whole, however, I understand Shakespeare quite well. I've made a very large effort to do so. :D