FEAR 1 wasn't scary either, once you realized that Alma sightings were really just a harmless mini-game since she never actually attacks.

Anyway, are we not counting Amnesia as a horror FPS? Or Penumbra? If the requirement for categorization is the ability to actually shoot things, then ironically that just highlights why all these other offerings ultimately fall flat: when the player has too much ability to effectively defend him/herself, it just becomes an action game with pretensions of horror.

But unfortunately, that's exactly what sells best to the mainstream gamer. Many people literally just can't handle a truly a scary video-game; they flat out won't play it. I have real life friends that are an exact case in point.