That's hideous...

Is there a PS2 or Wii version in the works?

Ok, you have a point.

But still, how can you consider a game survival horror when you get buttloads of ammo, herbs, sprays etc?
Compare RE4 to RE0-3 and tell me that they both belong in the same genre.

Anyway, it's just my opinion. 

I don't think horror is completely dependent on how much supplies you have. In Resident Evil 4, I felt that instead of doing anything scary (except for a few areas of course), the entire game had just turned into an action title instead of something that actually tried to scare me. The only parts where my blood would get flowing is when an enemy is rushing me and I'm trying to stop them before I get hit, which is similar to pretty much every other game.

I guess I've gotten over the nightmares of the dogs busting through the window in the first Resident Evil if the forth game was supposed to be scary.

 i don't think so

Wii version confirmed? haha.

If I had to hazard a guess, it would be that it was originally designed for the PS2 and that they didn't get all of the assets upgraded. I think it looks great... Why is every one screaming bloody murder? So what if the texture resolution sucks!

Well, Condemned, despite its wonky controls, was pretty fuckin' scary and good... But then Condemned 2 went and bolloxed it all up by turning the series all voodoo bullshit on us and explaining the crazy people away with frickin' noisy fire alarms. Ugh.