I'm not a big fan of the trend myself, because in many ways it just makes the game less scary for me. After a while, I stop thinking "Oh my gawds, a monster! Bu-bu-bu-but I can't kill it!" and more "Oh fuck, more of you? Ugh, let's get this over with. Yeah, yeah, BOO and all that, I'll run this way and you'll follow." I get that giving too many items takes away from the horror, but having no items doesn't actually make the game scarier. In many ways, a game with no items isn't actually as scary as a game with FEW items.
Picture the following scenarios if you will: there are three enemies in the room, and you have 300 bullets because the game just throws ammo at you. Not very scary, since you have more than enough to deal with each enemy. Now imagine the same scenario, but you have no bullets because the game doesn't have a weapons system. Sure, it may initially frighten you, but now it's no longer about overcoming tough situations so much as it's now overcoming puzzles, in this case the puzzle always being "How do I run away from these three dudes." You stop viewing it in your mind as something that must be feared and rather as something that must simply be dealt with like anything else. Now imagine the same scenario, but now you only have two bullets because the game does have weapons, but weapons are scarce and you need to properly use them. To me, this is the ideal scenario, because now each encounter forces you to consider which battles are worth it and which ones aren't. There's also that element of knowing that even if two enemies die, there's still the one, and then the feeling of failure springs to mind because you realize that as much as you dying is a result of the game's obstacles, your use or misuse of resources is also a cause for death. In other words, you are as much a monster to yourself as the actual monsters in the game (which tends to be the "point" as it were i a good number of games)
TLDR: Too much power isn't scary because it's almost impossible to lose, no power isn't scary because there is nothing to lose, and some power is scary because while you can survive, you always have something to lose with each encounter