It doesn't matter.
Silent Hill wasn't even about scary, though it certainly had some very scary moments. More than that, though, it was about the mystery, that there is something bad going on it and it involves you, probably in a way that won't leave you feeling good about yourself. It's about an atmosphere that takes the blackest of human emotions and manifests them in physical form. You're actually wading through pain, suffering, and guilt.
FPP is very good for storytelling. The only problem is that it sometimes can be hard to convince the player that they are someone else. However, that certainly can be accomplished, as games like BioShock prove.
In the end, it's going to depend on the story and how well they are able to communicate the trademark Silent Hill feelings of vulnerability and apprehension.
