Except the violate a prime directive of story telling in horror games, relative distance.
Character makes noises when going insane or being scared, forced view at objects = absolute taboo. Distances audience from the game character, breaks immersion instantly, also breaks connection of "player thinks hes really there", makes the game not as scary as it could be. Penumbra Overture was better in this regard.
Its scary yes, but not masterful.
If you want to read up on where i get with relative distance, you should google up Bertold Brecht.
(The reason this is bad, is of course that any break of immersion is creating "critical" observers instead of immersed players.