Count me in as one who pans SH4's story along with the gameplay.
The problem for me was that the story seemed a bit too standard j-horror, sometimes even slasher flick-ian.
There are folks lining up to be butchered by this supernatural madman, whom conveniently just can't do the same so easy to some regular schmo, a.k.a. the hero, and his girlfriend. Silly madman.
Mr. Madman himself is interesting (sometimes the only character that is so) but his characterization ends up getting lost in the endless explanation for how he can do what he does (mystic mumbo jumbo no one cares about).
He is invariably undone by the goodies being told of loopholes to his mumbo jumbo as if it was all some tax code to be dodged, all thanks to that specter in the ceiling with all the exposition. Goodies win or not, depending on ending, and Pyramid Head shrugs and goes back to being cooler than the entire plot of SH4.
It all sounds too shoehorned into a horror series that was doing ok without all that rubbish. That's probably because SH4 was intended to be a unique horror title, not an SH game (the shift probably occured in anticipation to the possible negs the gameplay would get).
I also don't understand why Travis can be subjected to critical grief when the original King Random Berk of Silent Hill, Henry, gets off with with worse. He is often but one line in SH4: "What the hell...?". At least Travis dares boldly to don the Marty McFly jacket.
Could've also been the horrendous, at times stupid gameplay that affected the narrative too much for me to appreciate it. Why is silly Walter insisting on ignoring Henry and Eileen and going after flying bugs in, er, his own dreamscape? Priorities much? Do the bugs remind him of cockroaches in his cereal when he was young? I've an urge to look up YouTube videos of people knocking those burping corpses down flights of stairs again...