Great stuff, this helps me track the historical significance better. Being an example of an early psych horror game instead of just “largely a worse resident evil” is definitely a huge part of this puzzle.
This also fits because I tend to dislike the psych horror games I’ve played, in contrast to the more classic survival horror or action horror stuff.
I think it’s absolutely a consequence of that trend in horror media. I’m seeing it backwards, it’s very similar to a ton of (what I find to be) schlocky edgy monster designs in bad movies and games that came after because it was ahead of that curve.