Going back to the example of ED, I still find that a puzzling one. With a device such as the vitality sensor you are tying the simulated "stress" of your character to your real life, measurable one.
Let's say that in an horror game you discover something that is supposed to stress your character, but doesn't do anything for you, such as a note saying "remember Newcastle" that would be explained later. Or you turn a corner to see a giant spider in a cathedral, but it's your third replay so there's no surprise there in real life even though it's supposed to be a terrible shock for your character.
Basically I can't see it being useful in games where the specific psychological involvement if your character is important, only in those games in which it's simply a control game mechanic (try and reduce your stress to have less shaking of your hand while defusing a bomb or performing surgery, or to reduce your oxygen consumption while swimming underwater).
For horror games where your character's psychological state is important but is not necessarily yours? Not so much. It would only work for cheap scares of the "dog through the window" kind, and even then not all the time. And ED with its lovecraftian, slowly mounting horror is not a good example.












