For the most part I agree. Though I won't qualify Dead Space as really scary as much as rather intense and suspenseful. A few sudden scares, but nothing like Silent Hill 2's notorious paranoia. The point should be made that danger doesn't equal horror. If that's the case, lots of games are horror. True horror is more psychological, trying to truely grasp what the hell is going on. That's the beauty in SH2, Fatal Frame, Alone in the Dark (old school ones, new one, not so much) and handful of other titles.
As much as I'd love to see something like z121231211 wants, with dynamic horror, it's really far off from possible. You'd need to create a super complex system like that in the upcoming Heavy Rain so the story can change depending on what happens, and then use a more interactive interface so you don't feel like you're just running down tracks. I would love to see it, but don't expect it for a long time yet.
As much as I'd love to see something like z121231211 wants, with dynamic horror, it's really far off from possible. You'd need to create a super complex system like that in the upcoming Heavy Rain so the story can change depending on what happens, and then use a more interactive interface so you don't feel like you're just running down tracks. I would love to see it, but don't expect it for a long time yet.