The town feeds off of characters’ trauma and guilt. The more they have, the more fucked up their stay is. The little girl is fine because she’s too young and innocent for it to affect her. The other thing about James’s apparent indifference to it all is it’s kinda like a bad drug trip for an addict. To anyone else it should be obviously something to avoid, but in his mind it’s just more business as usual due to his already broken psyche, so very little is externalized to the player.