True, it's more action than horror, but that started with RE4.
Personally, I suspect the RE series WILL decline, not because it's going in a different direction, but because Mikami no longer works for Capcom. I didn't find this out until a few months back, but every single one of my favorite REs (the original, 2, REmake, and 4) was made by Mikami. He has a touch that no one else seems to be able to replicate, and I'll miss the guy.
Hopefully, Capcom finds an equally talented dude to take the helm. Although it sounds like lots of people are enjoying 5.