In the end, I bought the game. So far I am enjoying it thoroughly. It's not a bad game as some sites are making it out to be. Too many expectations going into this one. First, the original games were scary to a degree, but people seem to think that survival horror is about jumping out of your seat. It's not, it's horrible things happening in a situation where survival is extremely unlikely. The zombies were never scary (though this is a subjective point of view I realize).
The problem is that the thing that ruins the horror is the expectation of the horror. If you expect to see a dog turned inside out then it cannot give you as intense a feeling of fear, shock or disgust. Part of the expectation of horror in this case is that you expect to see an inside out dog.
All of that said, it's a serviceable action title with a story that seems to have a lot of ins and outs (So far, I have not gotten through the game by any stretch). It's got a complex story, perhaps over complex. I'm not sitting here trying to give my review of the game, just my impressions. And my impression is that people are talking a lot of shit without having played it. Reviews are all over the board on this thing, and I can see why. I can't suggest anyone go out and buy it, but I also can't say that about FTL and that is my new favorite game.