I'm not sure, it's probably the perception of being dated or cheap. Honestly though it does provide a really awesome level of immersion. Since the entire game can be directed and scripted, every movement, camera angle, focus point, etc. each dramatic scene can achieve full impact. There's quite a few games I've played where something awesome was supposed to be happen like an explosion or whatever but because I wasn't standing in the correct spot or the camera was slightly off, I didn't see it fully or get to experience it properly, you don't have to worry about that with on-rails. Also with on-rails games there's no need for cut scenes as dramatic scenes can already be directed onto the...rail, I guess. I also like that multiple characters can be present alongside you without ever having to worry about physically getting in the way of each other e.g. RE5, Halo, etc. Dead Space Extraction is still probably one of the most immersive, cinematic games I've played. Not that I think anyone type of game is better than the either it all comes down to the core experience and storytelling techniques.
"Graphics is Power" - Nintendo Miyamoto.
https://www.youtube.com/user/xJusteBx
