As I've said before, horror is beyond the abillities of current game designers because anything thta is horror to horror fans (jaded) is going to be deeply offensive to the mainstream.
"Silent Hill 2" is the result of a time period before horror gamers had fully sold out, it's right on the line. I have refused to give Konami any money for it because they censored it based on complaints about the demo, but it still has the remnants of being a game designed to be really freaky in it, which shows through. Later "Silent Hill" games, and arguably most horror games in general, were designed around what wasn't going to push too many buttons with the mainstream... as a result they have more or less re-treading what they had already gotten away with, rather than trying to push the envelope and risking public ire.
At the time when I first had gotten my PS-2 it was all over the place that the Silent Hill 2 Demo had groups up in arms over all the bludgeoning of those skinless children that were in the original SH bestiary for example.
Right now, we're unlikely to see anything that good again, until the game industry regenerates it's nuts which it has allowed to be cut off.
In short we should be happy that we managed to get the "Fatal Frame" games when we did, especially seeing as the last one (for the Wii apparently) never made it to the US apparently for similar reasons, and due to the attention the previous games got. Granted they tended more towards the "Creepy" than outright horror.
That said, I would like to see Yahtzee marry a copy of Silent Hill 2, we had an Japanese guy marry a video game character
http://articles.cnn.com/2009-12-16/world/japan.virtual.wedding_1_virtual-world-sal-marry?_s=PM:WORLD
We also had an Aussie marry a dog.
http://www.ktla.com/news/landing/ktla-man-marries-dog,0,210566.story
I think Yahtzee, despite being in Australia, should take this finale step for british pride, flying the Union Jack proudly as he does.
I fear what the US will one day do to join this club.