Should Black avoid the Two Knights Defense because of the Fried Liver Attack?

Question

It seems like the Fried Liver Attack is too much for black to handle, so it seems it is best to avoid the Two Knights Defense as Black. An example of the Fried Liver Attack is below and Black just seems lost. Is there something Black can do?

[FEN ""]
1. e4 e5
2. Nf3 Nc6
3. Bc4 Nf6
4. Ng5 d5
5. exd5 Nxd5
6. Nxf7 Kxf7
7. Qf3+ Ke6
8. Nc3  Ncb4
9. a3   Nc2+
10. Kd1  Nxa1
11. Nxd5 Kd7
12. Re1  c6
13. Qf5+ Kd6
14. Qxe5+ Kc5
15. Nc7 Kb6
16. Nxa8#

Answer 1

In Two Knights defense black doesn't have to play 5...Nxd5?! The main line is 5...Na5, where black sacrifices a pawn, but gets active play for compensation. The game could continue like this:

[FEN ""]
1. e4 e5
2. Nf3 Nc6
3. Bc4 Nf6
4. Ng5 d5
5. exd5 Na5
6. Bb5+ c6
7. dxc6 bxc6
8. Be2 h6
9. Nf3 e4
10. Ne5 Bd6
11. d4 exd3
12. Nxd3

Besides 5...Na5, Black also has 5...Nd4 and 5...b5.

A very interesting continuation is the Traxler attack (4...Bc5!?):

[FEN "r1bqk2r/pppp1ppp/2n2n2/2b1p1N1/2B1P3/8/PPPP1PPP/RNBQK2R w KQkq - 6 5"]

Black does not defend the f7-square, and it first might look like a blunder, since 5.Nxf7 leads to a fork. However black has plenty of attacking resources after 5...Bxf2. Therefore, white usually plays 5.Bxf7, black is down a pawn, and loses castling ability, but has some compensation due to semi-opened file and piece activity.