On rails is the definition of horror becuase it's all scripted. People don't think the new RE's were scary because there is no scripted "scares" per se. But people think FEAR 2 is scary because of the scripted things. Really only game that ever freaked me out without scripted stuff was Eternal Darkness but that game is the definition of creepy.
On rails shooters can really make it creepy if done correctly. People don't see it that way because they aren't controlling the movements but with correct scripting it can be fucking scary. All about the atmosphere and timing and that is what on rails shooters are about.
Personally I would have rathered a TPS with RE4 Wii controls but on rails shooter is the next best thing. I'll wait for E3 to see what they've got.
