I dunno, I'm a big fan of RE4 and the path it chose to cross. Sure, it wasn't as scary as the previous titles, but it was probably the most intense in the series (If that counts for anything).
I mean, things like the Novistadors, Verdugo, the Oven Man, and U3 sure delivered on the thrills, but I do agree with you in that the Resident Evil series needs to know that it can be a great game without having to give up on its survival horror roots.
I just don't agree that we have to go back to the outdated PS/N64 way of scaring people. I don't believe that limiting a player is the proper way to scare him/her anymore. Were people actually scared of the zombies in REmake, or were they just scared because they couldn't see the zombie approaching because of the fixed camera angles? Or were they scared because they couldn't properly avoid the zombie because of the iffy controls?
I'm all for survival horror, but let's limit the player by scaring the bejeebus out of them (Holy crap! What do I do! He's gonna kill me! Ah!), and not limit them in the gameplay elements (Holy crap! I died because the camera blocked by view of the Tyrant. He's kind of silly looking though...).











