Personally I LOVE survival horror games, this gen was a bit disappointing as the survival horror genre turned into a regular shooter just with "scary" enemies.
I still think the best horror games I ever played was Silent Hill 2 and 3. PS2 being the best "horror" console ever. Fallout 3 and NV also had some scary and tense moments where you had to plan your attack while you had 3 morphed monsters running at you.
Fun times. I wish they had a fighting game with all the horror film characters. Like Jason vs Michael Myers, chucky vs hell raiser.