Horror games are often best when used as a social experience – played with friends on the couch, taking turns, trying to figure it out together, and getting freaked is a lot of fun, and games can be a catalyst to that the same way that going to a haunted house attraction might be. They’re also great for streamers, but basically the social aspect is done with their audience instead. Sitting there scared and uncomfortable by yourself just sucks, and I think most people who do it are either in it for review purposes or bragging rights.
That said, Dead Space (which I initially purchased for bragging rights at the time) was a lot of fun on its own once I got established. Getting weapon and armor upgrades was rewarding, visually cool to see, but also helped reduce the sense of dread immensely. I was then able to enjoy the creativity of the setting, monsters, and level design much more. I think most of the reason it’s so beloved to this day is due to its gameplay being pretty fun and solid on its own. There are plenty of games out there that just lean into being as scary as possible in concept without being as fondly remembered.