Whilst i can see the point that you are making, i don't think that Capcom have detracted from the overall horror of the series, sure, it may not be as scary as 1 or 3, but it was hardly a wonder through some sort of wonderland. In response to you main topic, i do think it has lost some of its way, but its now lacking puzzles which is what made the first 3 games so great.
I'd love to see downloadable background picture for the Wii menu, maybe they could come preloaded on game disks so you could themes from Smash Bros. or something that would rock.
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